Buyer sentiment is being impacted by the cost of living crisis, with buying intentions returning to levels not seen since the financial crisis, according to the Building Societies Association (BSA).

Data from the BSA Property Tracker Report shows only 18% think now is a good time to buy a house.

This is the lowest figure seen since the report began at the height of the financial crisis in 2008.

Affordability is the main concern.

Almost half of people (48%) say affordability of monthly mortgage repayments is a barrier to buying a property, increasing by 11% in three months.

Concerns are already hitting expenditure plans.

Over half (65%) of people revealed they are worried about the rising price of goods and services over the next six months, with 48% planning on reigning in expenses.

A third (33%) say they will spending less on essential purchases, with 30% planning to work more hours or find a new job in anticipation of rising costs.

There are signs of confidence among those already with a mortgage.

The vast majority (90%) are confident they can meet repayments over the next six months, which the BSA attributes to 81% of all UK mortgages being fixed rate.

Despite top-level concerns over buyer sentiment, BSA head of mortgage and housing policy Paul Broadhead is confident about positives in the data.

“It’s good to see that despite being in a rising interest rate environment, the majority of mortgage holders remain confident that they will be able to continue to make their mortgage payments,” says Broadhead.

He adds: “The increase in the number of people citing mortgage affordability as a barrier to buying a home is likely to continue. Whilst lenders expect some flattening of new mortgage demand as the year progresses, we anticipate that the re-mortgage market will remain buoyant.”