Rental and mortgage expenditure rose somewhat to 2% cent on an annual basis in January, according to the latest report from Barclays Property Insights.
Despite the increase, consumers’ trust in their ability to pay rental and mortgage payments remained, month to month by 52%unchanged.
Confidence in the UK housing market reached a lowest point in six months of 24%, because buyers deal with rising house prices and upcoming changes in seal rights.
Just over half of the tenants (51%) reported real estate prices as a main barrier for owning a house, an increase of 11% from December. Similarly, 44% see the costs of a deposit as a major obstacle, an increase of 37% in December.
However, some tenants are still hopeful despite the rising costs, because one in five (23%) is of the opinion that home ownership is within their reach within the next five years, with three in 10 currently saving for a down payment (31% ).
Young buyers attracted by new construction
Despite the decreasing trust in the housing market, many remain hopeful that housing is the solution. Two -thirds (65%) are of the opinion that New Builds are needed to offer more housing in the UK, and two in five (42%) say that new -build developments create a HALO effect for communities, making economic benefits for the area .
More than two-time (42%) of the British adults say they would consider buying a new building, rising to more than half of 18-34 year olds (52%).
In comparison with more than 55s, younger generations are three times more likely to consider new builds a better price-quality ratio than existing properties (34 percent of the 18-43 year olds versus 11 percent of 55+).
Three in 10 homeowners (28%) say that they have previously bought a new build -unanimous good. New houses were seen as more energy efficient and affordable than older properties.
Barclays Managing Director of Mortgages and Savings Sian McINTYRE noted: “The start of 2025 saw a slight increase in mortgage and lease expenditures, although this did not encourage consumers to make the trust in their ability to make payments. This month’s reduction in the basic rate was a further signal that we are going in the right direction. “
She added: “Home construction is increasingly a focus, with the prospects of the country on new developments pragmatically, and acknowledges the need for new builds as part of the solution to increase the housing stock, as well as the benefits they can deliver For homeowners and communities. “