Homeowners and savers feel more pessimistic about the future of the economy and their own financial wellbeing according to a survey by the Family Building Society.
The latest six-monthly poll of the Society’s members showed that 60 per cent believe the economy will slow down in the first half of 2025 – a 42 per cent increase compared to the Spring poll – while only 7 per cent thought there would be some growth.
While most are still satisfied with their individual financial wellbeing there is a growing unease about the future with 35 per cent – an increase of 21 per cent compared to April – expecting their situation to worsen as they fear the effects of inflation, tax hikes and stagnant income.
Housing is still seen as a critical issue with a majority wanting reforms including abolishing stamp duty for downsizers and building on brownfield sites.
The October Budget is one of the main reasons driving the feelings of pessimism, with 94 per cent of those polled identifying increases in employer National Insurance, Inheritance Tax changes and the lack of robust measures to address cost-of-living challenges likely to have negative effects.
Among the comments from members voicing their concerns on cost-of-living issues were:
“Prices are rising faster than average wage increases”
“Lack of investment in key infrastructure, higher interest rates affecting households, and increased unemployment”
“The pensioners like me seem to be penalised”
Members had equally strong views housing policy:
“Build on all derelict sites”
“Encourage mobility by abolishing Stamp Duty”
“Raise the Stamp Duty threshold. Abolishing it for downsizers will bring more large properties onto the market”
Alistair Nimmo, Director of Marketing at the Family Building Society said: “The October Budget clearly has had a largely negative impression on our members. 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.”
