Rent and mortgage spending in the UK saw a modest increase of 1.8% year-on-year in December, marking the slowest growth since August 2024, according to Barclays Property Insights. Despite this deceleration, consumer confidence in affording these payments dropped to 52%, the lowest level recorded last year.
Interest rate concerns slightly rose to 62% in December. However, optimism grew among some consumers following the Bank of England's decision to lower the base rate to 4.75% in November. One in five people reported feeling more positive due to this change.
The report highlights that one-fifth of renters believe homeownership is achievable within five years despite rising costs. Still, many face challenges such as high property prices and deposit requirements. Six out of ten renters feel buying a home is impossible without financial assistance from family.
Barclays' data shows that only 18% of recent first-time buyers received family help for their purchase, while others used mortgage products involving family members or opted for longer mortgage terms to manage costs.
A significant portion of renters saving for a home are doing so independently or with friends or partners. Some new homeowners utilized first-time-buyer schemes or extended mortgage terms to reduce monthly expenses.
Three out of ten Brits have moved homes in the past three years, driven by lifestyle improvements and proximity to family and friends. Looking forward, one-sixth of current homeowners plan to move this year, motivated by recent drops in house prices.
Homeowners continue investing in their properties with renovations aimed at boosting energy efficiency and sale value. Mark Arnold from Barclays noted: "December brought an easing to the growth in rent and mortgage spending seen in previous months."
Arnold also highlighted cautious optimism among renters establishing savings habits amid softening house prices and upcoming stamp duty changes.
For further details on purchasing a first home or related products like Barclays Family Springboard Mortgage, visit barclays.co.uk/mortgages/first-time-buyers/.