Rent and mortgage spending increased slightly year-on-year in January to 2.0%, up from 1.8% the month before, but despite this increase consumers’ confidence in their ability to afford rent and mortgage payments remained unchanged month-on-month at 52%, according to the latest Barclays Property Insights report.

Confidence in the UK housing market reached a six-month low of 24% however as buyers face rising housing prices and upcoming stamp duty changes. Half of renters (51%) reported property prices as a main barrier to owning a home, up 11 percentage points from December. Similarly, 44% see the cost of a deposit as a major barrier, up from 37% in December.

Despite the rising costs, almost one in five (23%) of renters believe that home ownership is within their reach within the next five years, with three in 10 currently saving for a deposit (31%).

Many believe that housebuilding is the solution to their dreams of owning a home. Two-thirds (65%) believe that new builds are necessary to provide more housing in the UK, and more than two-fifths (42%) of UK adults would consider buying a new build, rising to more than half of 18–34-year-olds (52%). Younger generations are three times more likely to consider new builds better value for money than existing properties compared to over-55s.

Hasn’t knocked confidence

Three in 10 homeowners (28%) have previously purchased a new build property thanks to a range of influences including newness (51%), desired location (51%), lack of property chain (38%) and modern features (35%). New homes are also perceived as being more energy-efficient (24%) and more affordable than older properties (20%).

Three in 10 homeowners (28%) say they are updating their homes to increase energy efficiency, whilst a fifth (21%) of renters are thinking about moving to a more energy-efficient home.

Of the mortgage holders surveyed, more than seven in 10 (72%) report being on a fixed rate. However, of those who have remortgaged in the past year (14%), nearly six in 10 (59%) have seen increased monthly repayments up by an average of £242.70 a month, or £2,912.40 a year. Only 10% say their monthly costs are now lower.

Sian McIntyre, managing director of mortgages and savings at Barclays, says: “The start of 2025 saw a slight increase in mortgage and rental spend, though encouragingly this hasn’t knocked consumers’ confidence in their ability to make payments. This month’s reduction in the base rate was a further signal that we’re headed in the right direction.”