Consumers are worried housing market stability could be hit next year by rising living costs and interest rates, the Building Societies Association says.
The BSA’s latest property tracker survey results show that the post-Referendum spike in property market confidence was short lived.
The BSA says fewer consumers believe now is as a good time to buy property than three months ago.
The survey, carried out by YouGov for the BSA, found that equal numbers of people (38 per cent) are worried that an increase in the cost of living or an interest rate rise could adversely affect the housing market next year.
In pre-Referendum June, 28 per cent of consumers agreed that it was a good time to buy a property while 27 per cent disagreed.
September saw some return of confidence, with 31 per cent agreeing it was a good time to buy versus just 21 per cent disagreeing.
However, in the most recent survey the proportion agreeing had reduced to 27 per cent while 22 per cent disagreed.
BSA chief economist Andrew Gall says: “While over a quarter believe it is still a good time to buy property, some have concerns about the stability of the housing market next year linked to the rising cost of living and borrowing costs.
“Inflation is expected to pick up in 2017 whilst wage growth remains weak, so these concerns are not misplaced.
“There is a great deal of uncertainty around the strength of the UK economy since the vote to leave the European Union, and this is reflected in the Property Tracker results.
“Potential house-buyers will understandably want to have as clear an idea as possible of the impact on their finances before making significant decisions.”