Nearly one in three (28%) people have considered moving to a cheaper area to reduce housing costs as a result of the cost of living crisis, Pepper Money has found.

The firm’s specialist lending study also revealed that the ongoing squeeze on finances has led to almost one in five (19%) people considering downsizing.

Pepper Money found that 68% of those who took part in the study said their disposable income has decreased in the last year as a result of the cost of living crisis, with 31% saying it has decreased significantly.

The biggest impact on household finances has been rises in the cost of food bills, followed by energy bills (86%) and travel costs (38%).

Sales director at Pepper Money, Paul Adams, said: "Faced with such a significant ongoing squeeze on their finances, millions of households are looking for ways they can cut their costs. Our study found the desire to do this is so significant for such a large proportion of people that 28% of all respondents say they have considered moving out of their area to somewhere cheaper, whilst 19% have thought about downsizing to reduce their housing costs.

"Whether customers are looking to move, downsize, or reduce their borrowing costs, brokers have a huge opportunity to help their customers to best manage the current economic environment and continue working towards the goals they want to achieve in their lives."

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