More than two-thirds of homeowners expect the UK economy to slow over the next six months as rising household costs continue to weigh on confidence, according to new research from Family Building Society.
The mutual’s latest Financial Wellbeing Survey found growing concern about the economic outlook, with just 3% of respondents expecting the economy to improve while the majority anticipate weaker conditions ahead.
The cost of living remains the biggest concern for households, cited by 70% of those surveyed, while half of respondents said they were worried about rising taxation.
The findings suggest ongoing pressure on household finances despite signs that inflation has eased from recent highs, with energy costs remaining a particular source of concern for many homeowners.
HOUSEHOLD SUPPORT
More than 70% of respondents believe the Government should provide additional support to help households manage rising energy bills.
Direct financial assistance was the most popular option, backed by 45% of respondents, while 40% favoured extending energy price protections. Other suggestions included temporary fuel duty reductions and increased public transport subsidies.
The survey also highlighted concerns about global events and their impact on household finances, with some respondents worried that continued instability in the Middle East could place further pressure on energy prices and the wider economy.
AFFORDABILITY MATTERS
Alistair Nimmo, Director of Marketing at Family Building Society, says: “The cost of living, and the prospect of further rises in energy bills, is hitting households across the UK hard. Our members’ concerns about the economy reflect the mood of many people across the country.
“Although many respondents are broadly satisfied with their current financial wellbeing, they believe the Government should do more to help people manage rising energy costs. They want clear, immediate financial support for households and businesses facing higher bills to help protect the wider economy.”
The findings come at a time when affordability remains a key issue across the housing market.
Consumer confidence is closely watched by property professionals as changes in household finances can influence buying decisions, moving plans and wider housing market activity.
The survey was conducted between 8 and 29 May and received 2,961 responses from Family Building Society members.
