Around half of homebuyers will continue to postpone plans to purchase a property after the Autumn Statement failed to provide sufficient housing market support, research suggests.
A survey of more than 1,000 homebuyers by Yopa has found 55% of buyers continue to postpone purchase plans following the Autumn Statement, while 45% had put their plans on hold as a consequence of rising mortgage rates and market uncertainty.
The research found that 58% of home buyers were disappointed by the lack of a Stamp Duty incentive in Chancellor Jeremy Hunt’s fiscal update last week, while 47% said it would have given them greater confidence to buy.
When asked about their position in the market and their current plans, 30% said they would continue to postpone their plans to purchase until 2024.
A quarter stated that they would continue to postpone their plans indefinitely, while 23% will continue looking following the Autumn Statement, but they will do so with caution.
However, 22% also stated that they would proceed with confidence now that the chance of a Stamp Duty saving has passed.
Verona Frankish, chief executive of Yopa, said: “The property market has stood firm all things considered, but there’s no denying that higher mortgage rates have led to a reduction in buyer activity and this has caused the rate of house price growth to grind to a halt.
“We had been hoping that the government would help stimulate the market by way of a stamp duty shake up. Had they done so, it’s clear that it would have helped entice hesitant home buyers back to the fold.
“Unfortunately, this wasn’t the case and, as a result, over half of home buyers plan to keep their ambitions to purchase on ice.”