Rent and mortgage spending in the UK saw a modest increase of 2.0% year-on-year in January, as revealed by the latest Barclays Property Insights report. Despite this rise, consumer confidence in affording rent and mortgage payments remained steady at 52%. The report noted that "consumer concerns around rising interest rates dipped slightly to 61 per cent, down from 62 per cent in December."
Confidence in the housing market hit a six-month low of 24%, with rising housing prices and upcoming stamp duty changes affecting buyers. Half of renters cited property prices as a significant barrier to homeownership, an increase of 11 percentage points from December.
Despite these challenges, there is optimism among renters, with one in five believing they could own a home within five years. Additionally, three out of ten are saving for a deposit.
The potential role of new builds was highlighted as two-thirds believe they are necessary for increasing housing supply. Over two-fifths would consider buying a new build, with younger generations showing more interest compared to older age groups.
Barclays reported that utility spending dropped by 10.1% as homeowners seek energy efficiency improvements. Three out of ten homeowners are making updates like installing heat pumps or solar panels.
Although the Bank of England base rate decreased to 4.5%, many homeowners have not seen reduced monthly repayments due to fixed-rate mortgages. Among those who remortgaged last year, nearly six in ten experienced increased payments averaging £243 monthly.
Sian McIntyre from Barclays commented on these findings: "The start of 2025 saw a slight increase in mortgage and rental spend... Housebuilding is increasingly a focus... prospective buyers will continue to look for ways to pair aspiration and affordability."
Barclays has introduced Mortgage Boost to assist first-time buyers by allowing family or friends to help without direct financial contributions.
For further details on Mortgage Boost and Barclays mortgage rates, visit their website.