The home buying market is slowing because people are expecting house prices to fall further, rather than because there is a shortage of available mortgages, according to new research.

Mortgage lender HSBC found that 98% of potential housebuyers have no problem arranging a mortgage, but the home buying market is slowing sharply because people are not confident in their ability to fund a new property as the cost of living, including mortgages, rises.

One in 10 of those surveyed said they were keen to move house or get on the housing ladder, but intended to wait for at least six months. Just 2% said they had difficulty getting a mortgage, but 37% said they did not want to buy while prices are expected to fall further and 36% said they were worried about the rising cost of living.

Martijn van der Heijden, HSBC's UK head of mortgages, said: "There is a perception at present that banks are not offering mortgages. In fact, our latest study suggests that access to finance is not a major issue. Instead, many buyers are taking a wait and see attitude, naturally some feel uncomfortable buying a home which may be worth less in six month's time."

She added that almost one in four buyers felt they might struggle to get a mortgage, but just 2% had actually given up on their purchase because they failed to find a suitable loan. "Anyone keen to buy a home still has an extensive range of mortgage options," Ms van der Heijden added.

The poll of 3,000 UK adults highlighted two groups of households - those actively looking to make a property purchase and a second group keen to move but choosing to delay for at least six months.

Of those people moving, the main reason given for going ahead with a purchase was "investment of home ownership" (26%), while almost a third of those who were delaying a move cited the need for more space as the reason they would like to move, but were prepared to wait until the market stabilises.

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