Rent and mortgage spending increased 8.2% year-on-year last month, reaching a 14-month high, according to the latest Barclays Property Insights report.
Despite increased costs, consumers have maintained confidence in their ability to afford housing payments, though stamp duty changes have hampered plans for some next-time buyers.
Concerns around rising interest rates dropped slightly to 59 per cent in November, down from a high of 63 per cent in June 2024, following the Bank of England’s decision to reduce the base rate to 4.75 per cent earlier in the month.
When asked about their household expenses, four in 10 Brits (41 per cent) reported being very concerned about rising household bills, with over half (56%) also somewhat worried about the impact of rising rent or mortgage costs.
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.
Meanwhile, two fifths of Brits (41%) are adjusting their spending habits to offset rising housing costs, with a third (29%) saying they are looking for ways to save money on their rent or mortgage.
Nearly a quarter (23%) of homeowners state that the cost of stamp duty is the biggest barrier to buying their next home. This tax is even more significant for younger homeowners, at 39% of 18–34-year-olds, compared to 15% of over 55s.
Amongst renters, just 7% say that the recent changes to stamp duty in the chancellor’s October budget will delay their home-buying aspirations, although this rises to 27% in London. In contrast, almost two thirds (64%) agree that property prices are the biggest barrier to buying a home.
For renters taking steps to save up for their housing deposit, trying to reduce monthly bills is most popular (37%), alongside reducing discretionary spending (37%). Three in 10 (30%) said they were cutting back on holidays to save cash, with a similar proportion investing in order to build their housing fund.
Barclays also reports that improving home energy efficiency remains a priority for the winter months ahead.
Government urged to accelerate efforts to make UK homes more energy efficient
