Barclays Report Highlights Trends in UK Housing and Mortgage Spending Amid Economic Changes
(IN BRIEF) The Barclays Property Insights report reveals a slowdown in the growth of rent and mortgage spending, which increased by 1.8% year-on-year in December, down from 8.2% in November. This is the lowest growth rate since August 2024, attributed to the Bank of England’s recent base rate reduction. Confidence in the ability to afford rent and mortgage payments dropped, with only 52% of consumers feeling confident. Despite challenges, many renters are still hopeful about homeownership, with 22% believing it is achievable within the next five years. Family support remains a key factor for many renters, though a significant number are saving independently for a deposit. Homebuyers are prioritizing properties with garages, driveways, and gardens, and many homeowners are planning renovations to increase property value.
(PRESS RELEASE) LONDON, 14-Jan-2025 — /EuropaWire/ — The latest Barclays Property Insights report reveals a slowdown in rent and mortgage spending growth, which rose 1.8% year-on-year in December, a significant drop from the previous month’s 8.2% increase. This marks the lowest growth rate since August 2024, a positive sign as more homeowners benefit from the Bank of England’s base rate reduction in November. However, despite this easing, confidence in the affordability of housing payments has dropped, with only 52% of consumers expressing confidence in their ability to meet rent and mortgage payments—down 3 percentage points from the previous month.
The report also highlights a shift in attitudes towards homeownership. While six in 10 renters believe they would need financial help from family, such as loans or inheritances, to afford a home, recent first-time buyers report that only 18% received such assistance. Meanwhile, many renters are opting to save for a deposit independently, with 35% of them building their deposit on their own, and 17% are teaming up with friends or partners to share the cost. Additionally, more than a quarter (29%) of new homeowners have used first-time buyer schemes, and 25% have opted for longer mortgage terms to ease monthly costs.
The desire for homeownership remains strong, with 22% of renters still hoping to buy within the next five years, despite challenges such as high property prices and deposit requirements. Some renters are turning to the “Bank of Mum and Dad” for support, but others are focused on saving independently. To cut costs, many are reviewing their monthly expenses, with 41% focusing on reducing utility bills despite rising energy prices, and 39% reducing discretionary spending.
Among prospective homebuyers, the priority is clear: properties with garages, driveways, and gardens are in high demand, with these features topping the list of desired amenities. Despite recent drops in house prices, which are seen as an opportunity for some to move to previously unaffordable areas, many homeowners are planning renovations or updates to improve property value, with 43% considering redecorating or renovating to enhance their homes’ appeal.
Mark Arnold, Head of Mortgages and Savings at Barclays, noted, “While saving for a first home remains a challenge, there is cautious optimism emerging. Many renters are developing strong savings habits, and the recent softening of house prices, along with changes to stamp duty, is motivating potential buyers and sellers to act.”
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 16th November – 23rd December 2023 vs 16th November – 23rd December 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 16th November – 23rd December 2023 vs 16th November – 23rd December 2024.
The consumer research in this press release was carried out between 13th and 18th December 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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