The cost-of-living crisis is having a “significant impact” on people’s homeownership ambitions, research from Bluestone Mortgages has revealed.
The research, which was conducted by Opinium and surveyed 2,000 UK adults in October, reported that 41 per cent of those surveyed (21.9mn people) are worse off by an average of £215 per month compared to 12 months ago.
Collectively, these individuals are worse off by £4.7bn per month.
The resulting affordability squeeze was found to be impacting people’s homeownership ambitions.
Of those with a mortgage, nearly half (49 per cent) are concerned about the impact of the inflationary environment on paying it, while 35 per cent of those looking to buy a home are worried about saving for deposit.
Additionally, 33 per cent of all UK adults are apprehensive about how the current economic climate will impact their future homebuying prospects.
Bluestone Mortgages sales and marketing director, Reece Beddall, said that stubborn inflation combined with the ongoing cost of living crisis is creating a new level of affordability concerns across the country.
He added that many potential homebuyers are finding it harder to save for a down payment or manage monthly mortgage payments.
“These constraints often eat away at their purchasing power, making it harder for brokers to write business while causing some clients to fall begging on their monthly expenses,” he explained.
“Minor setbacks like these can trigger high street lenders to turn away a borrower and force them to reconsider their homeownership dreams.
“However, it’s our industry’s duty to remind them that there is help at hand and brokers play a crucial role in helping these customers understand the options available to suit their unique circumstances.”
Bluestone’s research also looked at respondent’s economic worries, with almost two thirds (64 per cent) of respondents indicating concern about the impact of the inflationary environment on their ability to afford energy bills.
Similarly more than half (54 per cent) are worried about the impact of being able to afford their weekly food shop and how the current environment will affect their long-term finances.
tom.dunstan@ft.com
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