The ongoing cost of living crisis is affecting the mental health of a number of homeowners, new research shows.

According to a new survey of 2,000 UK homeowners who pay a mortgage, conducted by independent market research firm Danebury Research on behalf of global technology leader Dye & Durham, more than half – 56% – of respondents have genuine concerns over their financial situation and that of their families.

Nearly a third – 30% – say they 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, meaning repossessions could become a rising risk for the UK’s property market.

And with one in eight – 12% – UK homeowners – and nearly one in five – 19%- Londoners – expecting to delay selling or buying a home this year, 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.

Martha Vallance, COO for Dye & Durham, said: “The effects of high interest rates, energy bills and the increased cost of living overall cannot be underestimated. Our survey data shows Britons 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.”

Economic uncertainty is weighing on the minds of property owners with 69% of respondents concerned about the financial future for themselves and their family.

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 – for example by eating less, or not buying clothing or shoes for themselves. Already to date, 25% of respondents have had to delve into savings to put cash towards day-to-day expenses such as food or heating.

Other findings of note from the survey included:

• More than a third (36%) of respondents expect it will take significantly longer to pay off their mortgage than originally anticipated
• One in three (35%) expect to delay home renovation or improvement projects
• Almost one fifth (19%) expect they will need to delay retirement plans – increasing to nearly a quarter (24%) of 45-54 year olds
• Almost half (46%) of people in Yorkshire & The Humber said they could comfortably afford to continue paying their mortgage for just two months or less, if there was a change of circumstances for the main income earner, compared to 22% of Londoners who said the same
• To help manage monthly outgoings, three in five (60%) homeowners have cut-back on takeaways or meals out – including two thirds (66%) of those aged 55-64. More than half (52%) say they have reduced clothes shopping
• 39% of Londoners have returned to the office to reduce commuting time and cost.

Paul Clarke, UK product lead, Dye & Durham, commented: “For those concerned about making mortgage payments, seek advice from a mortgage advisor or your lender as help is available. It may be possible to secure a mortgage holiday or switch to interest-only payments for a temporary period. Selling a property can take a minimum of two-three months from sale agreed to completion, so for those considering downsizing to minimise mortgage commitments, don’t delay consulting an estate agent or legal conveyancer for advice.”