Over a quarter (27%) of homebuyers are putting off their house purchase due to fears around the rising cost of living, according to a report from Yorkshire Building Society.

This figure climbs to one in three (33%) first-time buyers who cite the cost of living crisis as a barrier to buying a home.

Yorkshire Building Society’s Housing Britain report, based on research of 1,750 UK adults, revealed that economic volatility was also among the most frequently cited concerns for those looking but feeling unable to buy, a home – with over a fifth (22%) saying that the current economic climate was another factor keeping them from making a purchase.

This comes amid a flurry of house price rises over the last 12 months, with latest monthly figures showing a 12.4% year-on-year increase, compared to 9.7% the previous month, as demand continues to outstrip supply.

“Although a relatively recent development, the cost of living crisis has shot right to the top of the list of concerns when it comes to purchasing a home,” said Yorkshire Building Society director of mortgages, Ben Merritt. “The crisis is now being felt across the population and filtering through to all aspects of life. Furthermore, with inflation now at 9%, it is showing no signs of abating.

“With little visibility into what the future might hold, or indeed how long the crisis will last, our research shows many buyers are hesitant of the market, feeling uneasy about the prospect of making a purchase in the current economic climate.

“The extent to which there is a supply issue in the housing market is demonstrated by the fact that, despite this, house prices have continued to rise, with demand remaining far greater than supply regardless.”

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