Property insights from Barclays have revealed that spending on rent and mortgages grew 4.5% year-on-year in September, marking a recovery after reaching a 17-month low in August.
This increase followed the Bank of England’s decision to hold the base rate steady during the MPC meeting in September.
Meanwhile, utilities spending fell by 12.5%, a temporary relief before the rise in Ofgem’s energy price cap began impacting household bills from 1st October.
Consumer confidence in household finances remained stable at 70% month-on-month, with no increase in the percentage of consumers lacking confidence in their ability to meet rent and mortgage payments, staying at 15%.
Mark Arnold, head of mortgages and savings at Barclays, said: “While consumer costs continue to be impacted by the ongoing volatility in the housing market, we are still encouraged by the long-term downward trajectory of rent and mortgage spending.
“The next MPC decision in November will certainly be one to watch, although we recognise that there are multiple complex issues impacting the housing market beyond just interest rates, including supply and demand pressures.
“I hope we can work alongside Government and industry to tackle some of these over the coming months.”
