The ongoing cost of living crisis is affecting the mental health of more than half (56%) of UK mortgage holders who have genuine concerns over their financial situation and that of their families, data from Dye & Durham reveals.
A survey of 2,000 UK homeowners who pay a mortgage, conducted by independent market research firm Danebury Research on behalf of Dye & Durham, found that 30% of respondents are worried they will fail to make mortgage repayments within the next year, with those aged 18-24 expressing particular concern (42%).
In addition, more than a third (36%) said they could only afford to continue paying their mortgage for two months if a job loss affected the main breadwinner.
Dye & Durham says this means repossessions could become a rising risk for the UK’s property market.
With 12% of UK homeowners expecting to delay selling or buying a home this year, Dye & Durham suggests legal professionals that rely on property transactions to drive revenue will need to take a closer look at their operations and make adjustments to better adapt to volatile market conditions and save money.
The survey also found that 69% of respondents are concerned about the financial future of themselves and their families.
Two thirds (66%) say they are worried their children or grandchildren will be unable to get on the property ladder due to affordability.
Survey respondents confirmed they (43%) have taken to selling personal items to better manage household budgets and more than half (55%) have made personal sacrifices so their family and children are not impacted.
To date, 25% of respondents have had to delve into savings to put cash towards day-to-day expenses such as food or heating.
The survey also revealed that more than a third (36%) of respondents expect it will take significantly longer to pay off their mortgage than originally anticipated if interest rates continue to rise in the next year.
Meanwhile, almost one-fifth (19%) expect they will need to delay retirement plans – increasing to nearly a quarter (24%) of 45 to 54-year-olds.
Dye & Durham chief operating officer Martha Vallance says: “The effects of high interest rates, energy bills and the increased cost of living overall cannot be underestimated. Our survey data shows people in the UK are extremely concerned about both their short- and long-term future and have reduced spending, raided savings and are delaying major purchases.”
“For legal professionals that rely on property transactions, this is likely to have a significant effect for the duration of 2023 and beyond. Now is the time to start evaluating technologies that can help modernise their businesses and help them save money by reducing unnecessary costs.”
