Housing policy remains a critical issue for many
Homeowners and savers are increasingly pessimistic about the economy and their personal finances, results of the latest survey by the Family Building Society have shown.
The biannual poll, conducted among the society’s members, found that 60% expect the economy to slow in the first half of 2025 — a 42% increase from the spring survey. In contrast, only 7% predicted economic growth during the same period.
Despite most respondents expressing satisfaction with their current financial wellbeing, 35% anticipated their personal finances would worsen — a sharp rise of 21 percentage points compared to April. Concerns about inflation, stagnant wages, and tax increases were the main factors driving this sentiment.
Housing policy remains a critical issue for respondents, with many advocating for reforms such as abolishing stamp duty for downsizers and developing brownfield sites to address supply shortages.
Some respondents called for more significant changes to stamp duty thresholds, believing that removing the tax for downsizers could free up larger homes and boost mobility in the housing market.
The October Budget emerged as a major source of discontent. Among those surveyed, 94% pointed to measures like increases in employer National Insurance contributions, changes to inheritance tax, and a lack of effective cost-of-living solutions as likely to harm the economy and households. In open-ended responses, members cited concerns about rising costs, insufficient wage growth, and higher interest rates.
Despite the prevailing pessimism, some members reported brighter spots in their financial situation. Most had not needed to provide financial support to family members, and many anticipated further cuts to the Bank of England base rate.
“The October Budget clearly has had a largely negative impression on our members,” said Alistair Nimmo (pictured), director of marketing at the Family Building Society. “They worry that any increase in business costs will mean higher consumer prices.
“There were some bright spots. For example, the majority had not needed to help out a family member financially and many are expecting further cuts in the Bank of England base rate. But, overall, our members are pessimistic about the economy and the uncertainty of where the housing market is heading.”
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