According to the latest data from Barclays Property Insights, spending on rent and mortgages in January increased by 2% from the same period in 2024.

Despite this, consumers remained steadfast in their confidence to afford rent and mortgage payments, with the figure matching December’s rate of 52%. 

Speaking about the figures, Sian McIntyre, Managing Director of Mortgages and Savings at Barclays, said: "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.”

Rising costs are also impacting the UK’s renters , with just over half (51%) telling Barclays that increasing property prices are holding them back from buying a house, an increase of 11% from the figure from the final month of 2024. 

It is the same story as renters try and save for deposit, named by 44% as the key barrier to getting on the property ladder, an increase of seven percentage points from December. 

Amid rising house prices and an upcoming change in the rules around stamp duty, confidence in the UK’s property market has dropped. Only 24% of those surveyed said they felt confident about the market’s prospects, the lowest figure recorded for the last six months. 

However, many renters are still backing themselves to become homeowners in the short to medium term and will be looking to products like Barclays' Mortgage Boost as they assess their options.  Over one in five renters (23%) told us that they’re planning to become homeowners by 2030, and 31% are in the process of putting their deposit together now. 

With that in mind, our research from January 2025 presents a mixed picture for confidence in the property market, but there are areas where there is more confidence to be found.

Consumer concerns remain high around rising interests, with Barclays’ research finding that 61% of respondents named the possibility of rising interest rates as a concern. This represents a small drop from December, which had the figure at 62%. 

But, with the Bank of England cutting interest rates to 4.5%, the third drop in rates in six months, interest rates are going in the right direction for the prospects of many would-be house buyers. 

Commenting on this, McIntyre added: “This month’s reduction in the base rate was a further signal that we’re headed in the right direction.”

However, for most homeowners, their mortgages will be unaffected, certainly for the time being. Of the mortgage holders we surveyed, almost three quarters (72%) reported that they were on a fixed rate and will only feel the benefits when their term expires. 

For those who saw their fixed rate expire over the past year, the change in costs has been significant. 59% of those who responded told us that their new fixed rate has come with an average increased cost, coming in at £2,912.40 extra, or £242.70 a month. By comparison, just 10% of people surveyed told us that their monthly mortgage costs have gone down. 

During the election campaign in summer 2025, the now government outlined its commitment to building 1.5 million new homes over the course of the parliament, and it is certainly a message that has cut through. 

Almost two-thirds (65%) of those we spoke to are supportive of stepping up the pace of housebuilding , believing it necessary to provide more housing in the UK. Sitting alongside this, 42% stated that they believe new builds deliver a halo effect for communities, with the influx of new housing bringing economic benefits to the surrounding area. 

As to why they might be inspired to choose a new build, respondents named location as the primary driver, with 51% rating it the most crucial factor. But the advantage of having no chain (38%), modern fixtures and fittings (35%) and energy efficiency (24%), also ranked highly. 

Speaking about the findings, McIntyre added: “Housebuilding is increasingly a focus, with the nation’s outlook on new developments pragmatic, recognising the necessity for new builds as part of the solution to increase housing supply, as well as the advantages they can bring to both homeowners and communities.”

She continued: “Ahead of April’s looming stamp duty changes, prospective buyers will continue to look for ways to pair aspiration and affordability, with energy efficiency a clear priority when choosing the right home.”

According to Barclays’ research, the younger the would-be homeowner, the more likely they are to be attracted to the prospect of a newly built house. 

Overall, from our new research, 42% of UK adults say they would consider buying a new build, but that rises by 10 percentage points when it is focused on answers from 18–34-year-olds. If compared to over-55s, the generation of many of their parents, younger generations are three times more likely to consider new builds better value for money than existing homes. 

It also differs by region, with respondents from Northern Ireland (55%), London (51%), and the West Midlands (46%) sitting at the summit in the regional rundown of where people would be most willing to buy a new property.