The rising cost of living remains the most pressing concern for Britons and could continue to act as a brake on property purchases and home moves, according to the latest figures from the Office for National Statistics (ONS).

In its July survey of public opinions and social trends, 85% of adults identified the cost of living as one of the most important issues facing the country, ahead of the NHS (81%) and the economy (67%).

Younger adults, particularly those under 50, were more likely to view it as the top concern and highlighting the financial pressures faced by those in the key homebuying demographic.

Nearly six in ten adults (59%) said their cost of living had risen over the past month. While that proportion is down from 72% in April, it remains well above the 45% recorded in July 2024.

LESS DISPOSABLE INCOME

The most common drivers of rising household costs were food prices (cited by 95% of respondents), energy bills (57%) and fuel costs (45%).

With higher day-to-day expenses leaving less disposable income, industry analysts warn that the ability of households to save for a deposit or fund the costs of moving is being squeezed.

This could limit housing market mobility as more potential buyers delay purchases or opt to stay in their current homes.

UNDER PRESSURE

The ONS data also showed a longer-term shift: while concerns over the cost of living have eased slightly from a peak of 93% in October 2022, they remain at historically high levels.

At the same time, reports of the economy as an important issue have fallen from 79% in late 2022 to 67% today, suggesting that household finances, rather than broader macroeconomic conditions, are now the dominant factor shaping personal decisions.

With property transactions already under pressure from higher mortgage rates, the persistence of cost-of-living concerns is likely to make moving home a lower priority for many, reinforcing the trend towards remortgaging and home improvements over trading up.

WORRYING TREND

Damon Hopkins, Head of DC Workplace Savings at independent consultancy Broadstone, said: “Britain’s cost-of-living crisis is proving stubbornly hard to shift, with 85% of adults naming it their number one concern – ahead of even the NHS and the economy – and six in 10 reporting an uptick in costs in the last month alone.”

And he added: “Sharp increases in food, fuel and energy prices are continuing to eat into household budgets, particularly for younger adults who are more likely to cite the cost of living as the UK’s most pressing challenge.

 “While some households have seen marginal relief, these latest figures show we are still a long way from a meaningful recovery.

 “This persistent pressure risks forcing longer-term saving onto the back burner. That’s a worrying trend which could leave millions unprepared for later life.”