A new survey by Nationwide Building Society has discovered that seven in 10 (70%) potential first-time buyers looking to purchase property in the next year or two have decided to delay their plans because the rising costs of living have impacted their ability to save for a deposit.
Some 93 per cent of people surveyed in Scotland said they had put their house buying plans on hold due to the additional pressures on outgoing finances, with similar percentages for Wales and Northern Ireland - both 98 per cent.
Of the main problems noted by people about buying a home in the area where they live, nearly three in five (57%) said it was high house prices, while 43 per cent said rents were too high to be able to save.
Nearly a quarter (24%) of the 2,000 prospective first-time buyers surveyed said their area had a competitive housing market, while the same amount (24%) cited a lack of homes on the market.
Around seven in 10 (69%) said they would be willing to relocate to another part of the UK to get more for their money.
However, nearly half (47%) are reducing their everyday spending and 43 per cent are cutting back on going out or eating out to try and increase their deposit savings.
Commenting on the survey findings, Paul Archer, senior mortgage manager at Nationwide Building Society, said: "Building a deposit remains the single biggest barrier to homeownership today, with many people starting out facing a long uphill battle to save. The rising cost of living has made this even harder."
Nationwide’s poll was carried out by as part of the Society’s efforts to support those looking to get onto the housing ladder during a period of high house prices and rising cost of living.
This includes a range of low deposit mortgages, the opportunity for first-time buyers to borrow up to 20 per cent more through the Society’s Helping Hand mortgage, and £500 cashback.
Britain’s biggest building society has also launched a new first-time buyer resourc e to help people navigate their specific housing journey and offer a range of guides and information to help support that.
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