Property pressure: the rising cost of a place to call your own

A man and a woman sit at a table looking at sheets of paper

Over the last decade, wage growth has struggled to keep pace with rent and mortgage costs, leaving many households squeezed and rethinking their priorities.

Key takeaway

Housing costs are eating up a bigger share of UK consumers’ income than ever before. In turn, financial planning and the attitude towards discretionary spending have changed.

An increase in home spending

heart icon

38% of consumers say their rent or mortgage now takes up a greater share of income than it did 10 years ago, rising to 55% of millennials (29-44 year-olds)

Shopping cart icon

5.6% average year-on-year growth in housing spend since tracking began in March 2023

Coffee icon

The sharpest spike seen to date is 12.2% growth in June 2023  

The ripple effects

Housing affordability affects far more than just property decisions. Whether renting or paying a mortgage, these costs are reshaping everything from savings to day-to-day spending – a clear reflection of the broader squeeze on household finances.

heart icon

45% say they don’t feel financially better off than a decade ago

Shopping cart icon

44% say they have less disposable income at the end of each month

Coffee icon

38% say rent/mortgage costs now account for a greater share of their income

This infographic shows key findings in response to the survey question, “Thinking about how your spending habits have changed in the last 10 years, to what extent do you agree or disagree with the following statements?”

More income on rent and mortgages

​Thinking about their spending on rent/mortgages, almost four in 10 of UK consumers agree that these payments make up a greater share of their income than 10 years ago.

This infographic shows key findings in response to the survey question, “Thinking about how your spending habits have changed in the last 10 years, to what extent do you agree or disagree with the following statements?”​

Data highlights:​

  • 38% of respondents agree that their spending on rent/mortgages now makes up a greater share of their income​
  • 46% of respondents aged 18 to 34 agree that their spending on rent/mortgages now makes up a greater share of their income​
  • 50% of respondents aged 35 to 54 agree that their spending on rent/mortgages now makes up a greater share of their income​​

What this means for brands

With housing costs reshaping disposable income, brands must adapt to consumers who are reprioritising value, flexibility and planning.

1

Support financial flexibility

Offer subscription models, payment plans or budget-friendly bundles

2

Lean into practicality

Create products or services that ease home life or boost long-term values

3

Stay sensitive

Use messaging that recognises financial pressure without playing on fear

Jatin Patel, Head of Life Moments at Barclays
“We’re entering a new era of family finance – where one generation’s stability becomes another’s safety net.” 

Jatin Patel, Head of Mortgages, Savings and Insurance at Barclays

Get in touch

To discuss your business requirements and how Barclays can support you, contact us today.