Rent and mortgage spending in the UK increased by 8.2% year-on-year in November, according to the latest Barclays Property Insights report. This rise has reached a 14-month high, despite consumers maintaining confidence in their ability to afford housing payments. Changes to stamp duty have affected some next-time buyers' plans, while improving home energy efficiency remains a priority for many homeowners.
Concerns about rising interest rates have slightly decreased, with 59% of respondents expressing concern in November, down from 63% in June 2024. The Bank of England's decision to reduce the base rate to 4.75% earlier this month may have contributed to this change.
Four out of ten Brits reported being very concerned about rising household bills, and over half were somewhat worried about increasing rent or mortgage costs. As a result, two-fifths are adjusting their spending habits, with three in ten seeking ways to save on rent or mortgage expenses.
Spending on utilities decreased by 10.6% year-on-year in November but showed the smallest decrease since July 2024 due to an energy price cap rise on October 1st and colder weather. A quarter of homeowners are making improvements to increase their home's energy efficiency, with loft insulation (48%), wall insulation (37%), double or triple glazing (35%), and solar panels (33%) being popular choices.
Despite these efforts, Barclays' report "Electrifying the future: boosting the energy efficiency of UK homes" found that one-third of homeowners are dissuaded from making improvements due to uncertainty about suitable options for their property. Some homeowners are also reluctant to bear retrofitting costs alone; 69% believe the government should fund these activities.
Barclays recommends five actions for the government to address barriers to retrofitting, including creating a Retrofitting Delivery Authority and supporting cross-sector collaboration.
The cost of stamp duty is cited as a significant barrier for nearly a quarter of homeowners looking to buy their next home. This tax is particularly burdensome for younger homeowners compared to older ones. Among renters, only 7% said recent changes would delay home-buying aspirations; however, property prices remain the biggest obstacle for most renters.
As Christmas approaches, sustainability and budgeting are priorities for many celebrating Britons. Two-fifths plan to reuse decorations instead of buying new ones, while more than half will skip purchasing a Christmas tree or decorations altogether.
Mark Arnold from Barclays stated: “The rise in rent and mortgage spending dampens some optimism following recent interest rate drops...We see positive news with homeowners interested in retrofitting measures...However...there remains more work needed...to make UK homes more energy efficient.”
For further information on mortgage repayments costs visit Barclays' website.