Barclays has found that rent and mortgage spending rose 8.2% year-on-year in November, reaching a 14-month high.
This increase comes as more homeowners transition from fixed-rate mortgages to higher interest rates.
Despite this rise in costs, consumers generally remained confident in their ability to manage housing payments, although changes to stamp duty have impacted some next-time buyers. Improving energy efficiency in homes is a priority as winter approaches.
Concerns about rising interest rates dropped slightly to 59% in November, down from 63% in June 2024, following the Bank of England’s decision to lower the base rate to 4.75% earlier in the month.
Four in 10 Brits (41%), reported significant worry about rising household bills, and more than half (56%), were somewhat worried about increasing rent or mortgage costs.
Research found that two-fifths of Brits (41%), adjusted their spending habits to cope with rising housing costs. A third (29%) looked for ways to save on their rent or mortgage.
Meanwhile, spending on utilities decreased by 10.6% year-on-year in November, marking the smallest drop since July 2024, partly due to the energy price cap increase that took effect in October and the onset of colder weather.
Around a quarter of homeowners (25%), reported making improvements to enhance their home’s energy efficiency.
More than half of these homeowners (52%) aimed to cut long-term energy use, while 19% hoped to increase their property’s value.
The most common upgrades included loft insulation at 48%, wall insulation at 37%, double or triple glazing at 35%, and solar panel installation at 33%.
However, one in three homeowners (35%), were discouraged from making improvements due to lack of understanding about which options suited their properties.
Additionally, 69% of those identified as ‘able to pay’ believed the Government should fund retrofitting efforts, with 67% calling for action to change how homes are heated or cooled.
Barclays made five recommendations to the Government to address barriers to retrofitting, including the establishment of a Retrofitting Delivery Authority to tackle implementation issues and promote cross-sector collaboration.
Nearly a quarter of homeowners (23%), identified Stamp Duty costs as the biggest hurdle to purchasing their next home.
This was more pronounced among younger homeowners, with 39% of those aged 18 to 34 citing this concern compared to 15% of those over 55.
Among renters, only 7% reported that recent Stamp Duty changes would delay their home-buying goals, though this jumped to 27% in London.
Almost two-thirds (64%) agreed that property prices posed the greatest barrier to homeownership.
For renters saving for a housing deposit, the most common strategy was cutting down on monthly bills (37%), along with reducing discretionary spending (37%).
Three in 10 (30%) reported cutting back on holidays to save money, with a similar percentage investing to build their housing fund.
Mark Arnold, head of mortgages and savings at Barclays, said: “The rise in rent and mortgage spending dampens some of the optimism felt following the recent drop in interest rates.
“For mortgage holders coming to the end of fixed rate deals set in or before 2022, they will only now be feeling the impact of the interim rate volatility.
“These effects are then being passed through to the rental sector, through higher rents and reduction in supply.
“We are seeing some positive news with homeowners interested in retrofitting measures, which has the dual effect of benefitting both the environment as well as consumers’ back pockets.
Arnold added: “However, there remains more to be done to build awareness and understanding of the options available.
“This is where we see the Government being able to play a key role, helping to bring together the public and private sectors to collectively harness consumer interest and help accelerate efforts to make UK homes more energy efficient.”
