According to the latest Barclays Property Insights report, rent and mortgage spending grew by 6.4% in October, the highest rate recorded since September 2023, ahead of the recent MPC announcement on the Base Rate.
Despite the increase in spending, consumers felt more confident in affording their housing payments.
More than half of Brits (55%) expressed confidence in their ability to meet monthly rental or mortgage costs, up from 53% in September. Concerns about rising interest rates held steady at 60%, down from 63% in June 2024.
Barclays Property Insights reported that eight in ten Brits (79%) are worried about the energy price cap increase, with 42% concerned about rising household bills. However, spending on utilities fell by 13% year-on-year, as prices remained below levels seen in 2023.
A quarter of renters (26%) had confidence in the housing market, and 21% felt more secure in affording their housing costs due to a recent drop in inflation.
Nearly half of 18-34-year-olds believed homeownership was achievable within the next five years, while only 28% of those aged 35-54 felt the same.
Property prices were seen as the biggest barrier to homeownership by 69% of renters, with 60% citing the cost of a deposit. A third of respondents (32%) reported an increase in their rental payments over the last year, which impacted their ability to save for a home.
18% of Brits are considering relocating in the next year, with the highest interest among 18-34-year-olds (33%). Most people looking to move preferred UK cities (30%) over the countryside (23%) and coast (20%). Those living rent-free with family or friends were more inclined to move to an urban area (40%).
The primary reason for relocation was saving money (28%), followed by improving lifestyle and wellbeing (27%) and being closer to friends or family (21%). Eighteen per cent of those wanting to relocate cited downsizing, increasing to 37% among those over 55.
Home improvement spending was down 7.7% compared to last year, but 44% of Brits reported plans to renovate or redecorate their homes.
27% aimed to improve the sale value of their property, while 20% were concerned about not being able to sell for their expected price. Six in ten (63%) noted a housing design feature that would turn them off a property.
The least liked design element was avocado bathroom suites (27%), especially among the over-55s (35%), followed by shaggy carpets (17%) and textured wallpaper (17%).
Mark Arnold, head of mortgages and savings at Barclays, said: “The housing market can be fickle, with housing trends and macro-economic factors having a direct impact on the monthly outgoings of millions of Brits.
“However, what truly drives the state of play is how confident consumers are feeling. Whether contemplating a relocation, purchasing a first home or redecorating, we can see that Brits have growing faith both in the housing market and in their ability to spend.
“Whilst spending on mortgages and rent has hit its highest level this year, so has consumers’ confidence in their homes.
“Even if interest rates fall as predicted, if this confidence is to be rewarded, more needs to be done to unlock greater capacity in the market to help drive down some of the financial barriers facing renters and homeowners as we look ahead to 2025.”
