Rising Housing Costs and Energy Efficiency Dominate Barclays Property Insights Report
(IN BRIEF) Barclays’ Property Insights Report reveals an 8.2% year-on-year rise in rent and mortgage costs in November, driven by homeowners transitioning to higher interest rates. Energy efficiency improvements, such as insulation and solar panels, are a priority for a quarter of homeowners, though financial and informational barriers persist. Stamp duty remains a key obstacle for next-time buyers, especially younger homeowners, while renters struggle with high property prices as the main barrier to homeownership. Many Brits are adjusting spending habits to manage rising costs, while sustainability and budgeting influence festive plans. Barclays highlights the need for public-private collaboration to address housing challenges and boost energy efficiency.
(PRESS RELEASE) LONDON, 5-Dec-2024 — /EuropaWire/ — Barclays’ latest Property Insights Report sheds light on the shifting dynamics of the UK housing market, revealing an 8.2% year-on-year increase in rent and mortgage spending in November, driven by homeowners transitioning to higher interest rates as fixed-rate mortgages expire. Despite these challenges, many Brits remain optimistic about managing housing payments. However, concerns persist, with stamp duty changes complicating plans for next-time buyers and renters citing high property prices as the main barrier to homeownership.
Energy Efficiency Takes Center Stage
As colder months approach, a quarter of homeowners are prioritizing energy efficiency improvements. Popular upgrades include loft insulation (48%), wall insulation (37%), double or triple glazing (35%), and solar panels (33%). While these measures aim to reduce energy consumption and boost property values, one-third of homeowners remain uncertain about the best retrofitting options. Financial barriers also loom large, with 69% of “able to pay” homeowners advocating for government support in funding retrofitting initiatives.
Barclays recommends a comprehensive approach to overcoming these obstacles, including establishing a Retrofitting Delivery Authority and fostering cross-sector collaboration to accelerate energy efficiency efforts.
Stamp Duty and Homeownership Challenges
Stamp duty costs are a significant hurdle for 23% of homeowners, particularly younger buyers, with 39% of those aged 18–34 citing it as their main obstacle. Renters, on the other hand, point to high property prices, with 64% identifying them as the biggest barrier to buying a home. Many renters are tightening budgets to save for deposits, cutting back on discretionary spending, holidays, and monthly bills.
Adapting to Rising Costs
Four in 10 Brits express significant concern about rising household bills, with 41% adjusting their spending to cope with increasing housing costs. Energy spending saw a slight annual decline of 10.6%, but the effects of colder weather and the October energy price cap rise are beginning to take their toll.
Sustainable Festive Spending
Sustainability and cost-cutting are influencing Christmas plans this year. Many Brits are reusing decorations (42%), switching to LED lights (24%), or skipping festive purchases altogether (51%). Renters face additional challenges, with 12% saying their housing situation limits their ability to decorate.
Expert Insights
Mark Arnold, Head of Mortgages and Savings at Barclays, remarked:
“The rise in rent and mortgage payments reflects ongoing challenges in the housing market, particularly for those exiting fixed-rate mortgage deals. However, there is a silver lining in homeowners’ growing interest in retrofitting, which benefits both the environment and household finances. Collaboration between public and private sectors is essential to accelerate these efforts and enhance awareness of available options.”
The report also emphasizes the importance of proactive steps to build financial resilience, improve energy efficiency, and navigate the evolving housing landscape.
For more insights and tools to calculate mortgage repayments, visit the Barclays mortgage calculators at Barclays Mortgage Calculator.
Notes to editors
Mortgage and rental payments data is sourced from Barclays current accounts – e.g. transactions identified as direct debits and bank transfers to mortgage lenders and private landlords. Please note: the data includes payments to multiple lenders (including Barclays). It relates to the period October 21st – November 17th 2023 vs October 19th – November 15th 2024.
Across its issuing and acquiring businesses, Barclays sees nearly 40 per cent of the nation’s credit and debit card transactions, which provides us with unique insight into UK consumer spending. This press release contains consumer card spending data from Barclays’ issuing business – i.e. Barclays debit card and Barclaycard credit card transactions. It relates to the period October 21st – November 17th 2023 vs October 19th – November 15th 2024.
The consumer research in this press release was carried out between 15th and 19th November 2024 by Opinium Research on behalf of Barclays. There were 2,000 respondents in each round of research, providing a representative sample of UK consumers by age, gender, region, and income group.
For more information, please contact Annie McQuoid at annie.mcquoid@barclays.com
About Barclays
Our vision is to be the UK-centred leader in global finance. We are a diversified bank with comprehensive UK consumer, corporate and wealth and private banking franchises, a leading investment bank and a strong, specialist US consumer bank. Through these five divisions, we are working together for a better financial future for our customers, clients and communities.
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About Barclays Market and Customer Insights
Barclays Market and Customer Insights helps businesses keep up to date with spending trends, monitors their market position and enhances their understanding of customer behaviour, based on actual customer spending. For further information, please email contact-MCI@barclays.com.
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SOURCE: Barclays
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