People are wary of buying property amid concerns about the cost of living, raising a deposit and keeping up with mortgage repayments, the Building Societies Association’s Property Tracker survey has found.
As it stands more people think it’s a bad time to buy (27%) than good (23%), as two in five (40%) are worried about the rising cost of living and over a quarter (28%) about saving for the future.
The biggest barrier to purchasing property is raising a deposit (68%), followed by affordability of mortgage repayments (45%) and the cost of stamp duty (38%).
Paul Broadhead (pictured), head of mortgage policy at the BSA, said: “Confidence in the housing market is clearly fragile.
“Consumers were faced with political uncertainty following the vote to leave the EU and unexpected General Election results, and now the rising cost of living is their latest challenge.
“Consumer prices are running ahead of wage growth, and there is little evidence of this changing in the short-term. This is adding to the formidable affordability constraints already facing prospective homebuyers.
“It is evident that homemovers are facing the same affordability pressures as first-time buyers, meaning some homeowners are unable to sell their property – further reducing choice and pushing up prices for those just getting on to the housing ladder.”