Around 32% of property sales fell through before completion between January and March of this year, according to new figures from Quick Move Now.

Of the sales that failed, 25% fell through because the buyer struggled to secure mortgage finance, suggesting that lenders are beginning to show more caution regarding rising interest rates and living costs.

Quick Move Now’s managing director Danny Luke says: “Property prices have been climbing and climbing in recent months. At the same time, the UK has been experiencing a steep rise in inflation and lots of people are beginning to really feel the pinch from steep rises in the cost of living. It was inevitable that the squeeze on people’s wallets would begin to be reflected in mortgage companies’ affordability assessments.

“From our conversations with potential buyers and estate agents, it is clear that lenders are being more cautious about which properties they’re prepared to lend on and how much home buyers can afford to borrow in light of rising day-to-day living costs. Energy prices have already risen by 50% for most UK households, and they look set to increase even further through the latter half of this year and into 2023. That, of course, has a significant impact on homeowner affordability.”