Barclays Property Insights has found that 16% of homeowners are planning to move in 2025. The report shows rent and mortgage costs grew by just 1.8% year-on-year in December, down from 8.2% in November, as more homeowners benefitted from the Bank of England’s base rate reduction to 4.75% in November.
Despite slowing growth in housing costs, confidence in affording rent and mortgage payments dropped to 52% in December, the lowest point in 2024. Concerns about further rate rises remain high, with 62% of respondents worried about future interest rate increases.
Although 22% of renters believe homeownership is possible within five years, affordability remains a major challenge. Property prices and deposit costs were cited as the biggest obstacles by 40% and 37% of renters, respectively. Financial support from family remains key, with 57% of renters believing they cannot buy a home without an inheritance or loan from relatives.
Among recent first-time buyers, 18% received financial help from family, while 12% used mortgage products involving family, such as Barclays’ Family Springboard Mortgage.
Despite the reliance on family support, 35% of renters saving for a deposit are doing so independently. Another 17% are pooling resources with a friend or partner. To save more effectively, 41% of respondents said they are cutting back on monthly bills, while 39% are reducing discretionary spending.
Three in 10 respondents reported moving home in the past three years, with lifestyle improvements, being closer to family, and seeking larger homes among the main reasons. One in 10 buyers now views properties in previously unaffordable areas as within reach due to recent price drops.
Looking ahead, garages or driveways (40%), gardens (39%), and functional spaces such as pantries (32%) are top priorities for those planning to move in 2025.
Homeowners’ spending on household items fell slightly by 0.3% in December, the smallest decline of 2024, as many prepared for Christmas. Seasonal spending also boosted sales at garden centres by 3.1%.
Looking forward, 43% of homeowners plan to renovate or redecorate their properties in 2025. A quarter are focusing on improving energy efficiency, while 28% are upgrading to increase resale value.
Mark Arnold, head of mortgages and savings at Barclays, said: “December brought an easing to the growth in rent and mortgage spending, as the Bank of England’s rate cut in November took effect. Saving for a first home remains difficult, with many still relying on family support. However, falling house prices and upcoming stamp duty changes have created cautious optimism, encouraging both buyers and sellers to act.”
