In the wake of the prevailing cost-of-living crisis, many homeowners are contemplating significant changes to their living arrangements, with a recent study from Pepper Money Specialist Lending Study shedding light on the shifting landscape. The research discloses that 28% of individuals have mulled over the idea of relocating to a different area as a means of alleviating housing costs.
The study delves deeper, revealing that the financial strain has prompted 19% of respondents to consider downsizing their homes. As homeowners grapple with the economic challenges, a staggering 68% report a decrease in their disposable income over the past year, with 31% experiencing a significant decline.
Unsurprisingly, the surge in the cost of living has taken a toll on household budgets, with the study identifying the primary culprits. A whopping 92% of participants cite an increase in food bills as the most impactful, closely followed by surges in energy bills (86%) and elevated travel costs (38%).
For homeowners grappling with the financial repercussions of the cost-of-living crisis, there are practical steps to consider.
Investigate neighbourhoods with lower housing costs without compromising on essential amenities. Moving to a more affordable area could be a strategic move to ease the financial burden.
For those open to a change in living space, downsizing could be a viable solution. Consider the practicality of a smaller home and evaluate potential cost savings in terms of both mortgage and maintenance.
Take a proactive approach to managing finances by closely monitoring and adjusting budgets. Identify areas where spending can be trimmed without sacrificing essential needs.
Implement energy-efficient practices to curb rising energy bills. Simple measures like installing energy-saving appliances and improving insulation can contribute to long-term savings.
Assess alternatives to traditional commuting to mitigate the impact of rising travel costs. Public transport, carpooling, or even exploring remote work options could be potential solutions.
Understanding the challenges posed by the cost-of-living crisis, it's crucial for homeowners to navigate these uncertainties with informed decisions. By exploring practical solutions and remaining vigilant about their financial health, individuals can take control of their housing situations in the face of economic challenges.
Paul Adams, Sales Director at Pepper Money, said: “Faced with such a significant ongoing squeeze on their finances, millions of households are looking for ways they can cut their costs. Our study found the desire to do this is so significant for such a large proportion of people that 28% of all respondents say they have considered moving out of their area to somewhere cheaper, whilst 19% have thought about downsizing to reduce their housing costs. Whether customers are looking to move, downsize, or reduce their borrowing costs, brokers have a huge opportunity to help their customers to best manage the current economic environment and continue working towards the goals they want to achieve in their lives.”
If you are looking to make a big decision in the housing market this year, we are here to assist you. We aim to provide everything you need when selling your home, and we are more than happy to talk or take you through the process from start to end.
At Coakley & Theaker, we aim to support the local community as much as we can, and we know this is an extremely trying time. A lot of people are looking for support and guidance, and if you have any property or housing related questions, we are more than happy to assist you, so contact us today by calling us on 01284 769691.
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