Rent and mortgage spending reaches record highs amid growing confidence in the housing market

Spending on rent and mortgages has hit its highest levels this year, according to Barclays Property Insights report.

The report reveals rent and mortgage spending grew by 6.4% in October, the highest rate of growth recorded since September 2023.

Despite these rising costs, many people feel more confident about the housing market and their ability to afford rent or mortgage payments.

Confidence in the housing market

According to the Barclays Property Insights report, more than half of Brits (55%) are confident they can afford their monthly rental or mortgage outgoings – an increase compared to September (53%).

More than a quarter of renters (26%) reported having confidence in the UK housing market, while a fifth (21%) report that the recent drop in inflation has made them more confident in their ability to afford their housing costs.

When asked ahead of the recent government Budget, young renters were hopeful about their prospects, as nearly half of 18-34-year-olds said homeownership is within their reach within the next five years.

However, for older renters, this drops off, as only three in 10 of 35–54-year-olds (28%) think it will be possible in their lifetime.

Property prices are seen as the biggest barrier to homeownership

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 with the interest rate drop from 5% to 4.75%, 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.”

The report reveals that high property prices are seen as the biggest barrier to homeownership for nearly seven in 10 renters (69%), while 60% say the main obstacle is the cost of saving for a deposit.

Over the past year, more than a third of renters (32%) have also experienced an increase in their rent, which has further impacted their ability to save for a home.

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