Rent and mortgage spending increased slightly to 2% cent year-on-year in January, according to the latest Barclays Property Insights report.
Despite the increase, consumers’ confidence in their ability to afford rent and mortgage payments remained unchanged month-on-month at 52%.
Confidence in the UK’s housing market reached a six-month low of 24% as buyers deal with rising housing prices and upcoming stamp duty changes.
Just over half of renters (51%) reported property prices as a main barrier to owning a home, up 11% from December. Similarly, 44% see the cost of a deposit as a major hurdle, up from 37% in December.
However, some renters are still hopeful despite rising costs, as one in five (23%) believe that home ownership is within their reach within the next five years, with three in 10 currently saving for a deposit (31%).
Young buyers attracted by new build
Despite declining confidence in the housing market, many remain hopeful that housebuilding is the solution. Two thirds (65%) believe that new builds are necessary to provide more housing in the UK, and two in five (42%) say that new build developments create a halo effect for communities, bringing economic benefits to the area.
Over two-fifths (42%) of UK adults say they would consider buying a new build, rising to over half of 18–34-year-olds (52%).
Compared to over 55s, younger generations are three times more likely to consider new builds better value for money than existing properties (34 per cent of 18-43-year-olds vs 11 per cent of 55+).
Three in 10 homeowners (28%) say they have previously purchased a new build property. New homes were perceived as being more energy efficient as well as more affordable than older properties.
Barclays managing director of mortgages and savings Sian McIntyre commented: “The start of 2025 saw a slight increase in mortgage and rental spend, though encouragingly this hasn’t knocked consumers’ confidence in their ability to make payments. This month’s reduction in the base rate was a further signal that we’re headed in the right direction.”
She added: “Housebuilding is increasingly a focus, with the nation’s outlook on new developments pragmatic, recognising the necessity for new builds as part of the solution to increase housing supply, as well as the advantages they can bring to both homeowners and communities.”
