The findings are from The Mortgage Lender’s Property Pulse Index which focusses on people's attitudes to the property market over the next three months.
And despite efforts from the Bank of England to quash fears of an unsustainable housing market by lowering interest rates, consumers are also still wary that rates will rise again. Almost a third (29%) of those questioned claimed that a rise in interest rates was the main factor that would affect their home-buying decisions over the next three months.
More than a quarter of Britons (26%) claimed that over-inflated house prices will affect their home-buying decisions over the next three months. This was a particular concern for those in the 25-34 age bracket (33%) - those who would typically be looking for a reasonably priced first property. Plus, as the economy continues to stutter along, people are clearly feeling insecure, as 16% of those questioned claimed that job losses in their industry would impact on their home buying decisions
Commenting on the results, Tim Kirby, managing director of The Mortgage Lender, said: "It is not surprising to see that property prices remain a defining factor in people's decisions to buy a home. However, people now seem to be wary of the market, as it is no longer taken for granted that property prices will work in the seller's favour.
"However, recent findings from The Mortgage Lender's Property Pulse Index showed an optimism amongst consumers that house prices will continue to rise over the next three months, so it will be interesting to see how the markets pan out, and how home buyer and seller's confidence fares as we move into the second quarter of the year."
