Homeowners and savers feel more pessimistic about the future of the economy and their own financial wellbeing, a survey by the Family Building Society has indicated.

A new poll of the society’s members showed that 60% believe the economy will slow down in the first half of 2025 – a 42% jump on the level that Family Building Society reported six months ago – while only 7% thought there would be some growth.

The society’s research, which was based on over 2,700 responses from its members, indicated that while most are still satisfied with their individual financial wellbeing, there is a growing unease about the future. More than one in three (35%) – an increase of 21% compared to April’s findings – expect their situation to worsen as they fear the effects of inflation, tax hikes and stagnant income.

Housing was still seen as a “critical issue”, Family Building Society found, with most respondents in favour of reforms including abolishing stamp duty for downsizers and building on brownfield sites.

The October Budget was also one of the main reasons driving the feelings of pessimism, with 94% of those polled identifying increases in employer national insurance, inheritance tax changes and the lack of robust measures to address cost of living challenges likely to have negative effects.

Director of marketing at the Family Building Society, Alistair Nimmo, said: “The October Budget clearly has had a largely negative impression on our members. They worry that any increase in business costs will mean higher consumer prices.

“There were some bright spots. For example, the majority had not needed to help out a family member financially and many are expecting further cuts in the Bank of England base rate. But, overall, our members are pessimistic about the economy and the uncertainty of where the housing market is heading.”

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