New survey data conducted by independent market research firm Danebury Research on behalf of global technology leader Dye & Durham has revealed the extent of the cost-of-living crisis on homeowners.
According to the survey, 56% of mortgage holders say that the crisis is affecting their mental health.
Meanwhile, 30% are worried they will fail to make mortgage repayments within the next year, with 36% saying they could not afford to continue paying their mortgage for more than two months if the main earner in their household lost their job. Two-thirds are also worried that their offspring will be unable to get on the property ladder.
The survey also found that 42% of respondents believe that the UK is currently in a recession, while 35% say that the country is about to enter one.
Additionally, legal professionals in the property space are being urged to digitise their operations amidst slowing transaction volumes.
Martha Vallance, chief operating officer for Dye & Durham, said that the effects of high interest rates, energy bills, and the increased cost of living overall cannot be underestimated. She said that Brits are extremely concerned about their short- and long-term future and have reduced spending, raided savings, and delayed major purchases.
The economic uncertainty is weighing on the minds of property owners with 69% concerned about their financial future. Almost one-fifth expect they will need to delay retirement plans, while almost half of people in Yorkshire & The Humber said they could only comfortably afford to continue paying their mortgage for just two months or less.
Property and legal professionals including solicitors, lawyers, legal firms, estate agents, and mortgage brokers saw record numbers of property transactions following the Covid-19 pandemic.
With a slower and more challenging market expected throughout 2023, industry professionals have the opportunity to implement plans to improve operational efficiency.
Paul Clarke, UK product lead at Dye & Durham, said that by improving their processes and workflows now, it will provide a real advantage once the market bounces back to previous levels.
