"16-24 year-olds have been most affected, with 91% admitting to having felt the impact of the financial crisis when it came to their property decisions."
- Aqua
Of those surveyed (2,009), 14% said they had put off buying a house due to the cost-of-living crisis, while one in ten (11%) said they were more likely to rent a property in the current climate. Overall, Aqua found that nearly two-thirds (59%) think the cost-of-living crisis has influenced their property decisions in some way.
Aqua found that 16-24 year-olds had been most affected, with 91% admitting that they had been impacted by the economy when it came to their property decisions, compared to 69% of those aged 55 who said it hadn’t affected any house choices.
Meanwhile, 21% of those aged 25-34 admitted they had pushed back purchasing a property due to the current landscape, whilst 17% said they were more likely to rent a property than buy at the moment.
Location was another important factor, with residents living in Newcastle reportedly being the least impacted when it came to buying a property while 23% of residents in Bristol had been deterred from purchasing a home. Of those living in Southampton, 63% said their property decisions hadn’t been influenced by the economic climate, while nearly three-quarters (69%) of residents in Liverpool had felt the effects.
To alleviate the pressures of the cost-of-living crisis, the Government has introduced schemes to help people get on the property ladder. When asked how they felt about these schemes, one-fifth (21%) said they felt more motivated to buy a property due to having more options, especially amongst those living in Leeds (32%), Belfast (27%), and Bristol (26%).
Concerningly, only 26% of those surveyed had a clear understanding of the link between credit scores and mortgage offerings, while 12% didn’t have any understanding at all. For those looking to purchase a home, building a strong credit score is key, and credit cards can be a useful tool for improving credit scores and getting potential buyers mortgage ready.
Aqua has suggested that alongside strengthening credit scores, potential buyers should look at opening a lifetime ISA to build up reserves on a long-term basis; compare mortgage rates with a specialist to ensure they’re getting the best deal for their situation; look into government schemes such as 95% mortgages and shared ownership properties to help get on the property ladder.
Commenting on these findings, Sharvan Selvam, Commercial Director at Aqua, has said:
“Our research has shown that many people do not have a clear understanding of how credit scores can impact mortgage offerings, and some have no understanding at all. When used responsibly, a credit card can help improve your credit score, which is something lenders will consider in your mortgage application. A good credit score can open you up to better mortgage rates, increase the borrowing options available to you and makes it easier to get mortgage approval.”
