Rent and mortgage spending was slightly above 2% in January, according to the latest Barclays Real Estate Insights report.
Despite the increase, consumer confidence in the ability to afford rents and mortgages remains unchanged, and remains unchanged every month.
Confidence in the UK housing market reached a six-month low of 24 per cent as buyers deal with rising housing prices and upcoming stamp duty changes.
Just over half of tenants (51%) reported home prices as the main obstacle to home ownership, an increase of 11% from December. Similarly, 44% view the cost of the deposit as a major obstacle, up from 37% in December.
But despite the rising costs, some renters are still hopeful, as one in five (23%) believe home ownership is already within its scope over the next five years, with three thirds savings currently saving on deposits (31%).
Young buyers are attracted by new construction
Despite the decline in confidence in the housing market, many still hope that housing construction is the solution. Two-thirds (65%) believe that providing more housing in the UK is necessary, and one-fifth (42%) say that new building developments have a halo effect on the community, thus bringing an economy to the region Benefit.
More than two-fifths (42%) of UK adults say they would consider buying new buildings, increasing to more than half (52%) of those aged 18-34.
Compared to over 55 years old, the younger generation believes that newly built value is three times more valuable than existing properties (34% of young people aged 18-43, compared with 11% over 55 years old).
Three out of 10 homeowners (28%) said they had previously purchased new construction properties. New homes are considered more energy-efficient and affordable than older properties.
Sian McIntyre, managing director of Barclays Mortgage and Savings, commented: “In early 2025, mortgage and rental spending increased slightly, although encouragingly, this did not enable consumers to pay for them. Confidence. This month’s base rate reduction is a further signal we are heading in the right direction.”
She added: “House construction is becoming increasingly focused, the nation is pragmatic about new developments, recognizing the need for new buildings, which is part of the solution to increase housing supply and the advantages they can bring to homeowners and communities. .”
