Three in ten put off major purchases because of financial worries

Research from consumer group Which? has found that three in ten (28%) of people have been put off from making a major purchase including items such as cars, furniture and electronic devices – in the last month because they were worried about their future household finances.

The data also showed that the estimated number of households missing essential payments, such as rent or mortgage payments, utility bills, credit card or loan payments rose to 2.1 million households in the month to 17 February. This is an increase from the estimated 1.6 million who missed payments in January.

The proportion of mortgage holders in Which?’s survey who missed a mortgage payment particularly increased in the last month, to 3.4 per cent. This is the highest level of missed mortgage payments since August 2024 and suggests many are still struggling to make ends meet due to ongoing cost of living pressures.

An estimated 14.3 million households (51%) made at least one adjustment to cover essential spending such as utility bills, housing costs, groceries, school supplies and medicines in the last month. Adjustments include cutting back on essentials, dipping into savings, selling possessions or borrowing. This is higher than the 45 per cent seen in January.

These financial strains and anxieties about the future are not just a blip. Consumer confidence in their future household finances has remained low for the past seven months and has not exceeded a net score of zero since July 2024.

This month, consumer confidence in future household finances was scored at -8, with three in ten adults (31%) expecting their finances to worsen and only a quarter (23%) saying they think their finances will improve.

Consumer confidence in the future UK economy has also remained below zero since July 2024, scoring -40 this month. This marks a gap between consumers’ confidence in their own household finances and their confidence in the future economy.

Three in ten (29%) said they believe that their future finances will get better or stay the same but the economy will worsen.

Rocio Concha, Which? Director of Policy and Advocacy, said “Our research shows that low consumer confidence is having an impact on household spending – with three in ten delaying a major purchase due to financial worries.

“The government must place consumers at the heart of its plans to grow the economy. It can boost consumer sentiment by enforcing well-designed laws and regulations that allow people to switch to better services and give them confidence to try new products without fear of being ripped off.”