Rent and mortgage spending in the UK reached a 13-month high with a growth of 6.4% in October, as reported by Barclays Property Insights. Despite this increase, consumer confidence in affording housing payments has risen to its highest level this year. "More than half of Brits (55 per cent) are confident they can afford their monthly rental or mortgage outgoings," an improvement from September's 53%. Concerns over rising interest rates remain at 60%, slightly down from June's peak of 63%.
Energy costs continue to worry consumers, with eight out of ten expressing concern about the energy price cap rise on October 1st. Yet, spending on utilities fell by 13% year-on-year, indicating potential frugality in energy consumption.
Younger renters express optimism about homeownership prospects, with nearly half of those aged 18-34 believing they will own a home within five years. In contrast, only 28% of individuals aged 35-54 share this sentiment for their lifetime. High property prices and deposit costs remain significant barriers to homeownership for many renters.
A portion of the population is considering relocation within the next year, particularly among younger demographics who prefer city living over rural or coastal areas. The motivations include saving money, improving lifestyle quality, and proximity to family and friends.
The report also highlights that while spending on home improvements has decreased compared to last year, many homeowners are contemplating renovations to enhance property value despite some design features being considered dealbreakers for buyers.
Mark Arnold from Barclays stated: "Whether contemplating a relocation, purchasing a first home or redecorating, we can see that Brits have growing faith both in the housing market and in their ability to spend." He emphasized the need for further measures to reduce financial barriers facing renters and homeowners as they look towards future opportunities.
For additional insights into mortgage repayments, Barclays offers online resources through their mortgage calculators.