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Inflated property prices worry prospective buyers

Nearly a quarter of prospective homebuyers worry about overstretching themselves financially while worrying about paying an inflated price for a property is a concern for 22 per cent of homebuyers.

A survey by Kensington Mortgages of 1,000 new homebuyers shows that 23 per cent are worried about overstretching themselves compared with the fear of losing their job which is a concern for 14 per cent. Fears over job security rose to 34 per cent among those with defaults on their credit record.

Prospective buyers are taking comfort from financial experts&#39 predictions that the housing market will avoid a hard landing, with only 4 per cent concerned about the possibility of finding themselves with negative equity.

People in the North were most concerned about interest rate rises and an economic downturn, with 24 per cent concerned about a rate increase and 33 per cent worried about job losses in their industry.

Londoners were the most concerned about being unable to get on the housing ladder, with 14 per cent giving this as their highest concern.

Kensington chief executive John Maltby says: “While there is some evidence to suggest that the housing market is beginning to cool, there is also evidence to show that people are overstretching themselves financially. With consumer debt and spending on the up, it is imperative that people take a hard look at their financial affairs before they commit to a mortgage.”

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