Rent and mortgage spending growth slows – Barclays

Growth in UK rent and mortgage expenditure slowed for the fourth consecutive month, rising by 4.3% in June compared to 4.6% in May, according to Barclays Property Insights.

This easing coincides with major lenders reducing mortgage rates, offering some relief to homeowners.

Barclays says its data highlights ongoing challenges for renters, with nearly half (49%) believing renting is costlier than owning a home.

Renters are also almost three times more likely to struggle with housing costs than homeowners, with 25% facing difficulties compared to 9% of mortgage-payers.

Homeownership is ‘unattainable’

Jatin Patel, the head of mortgages, savings and insurance at Barclays, said: “Our latest insights reflect a housing market in transition.

“While half of renters view homeownership as unattainable without financial support schemes, there remains a significant gap in awareness of initiatives like Shared Ownership, particularly among younger adults.”

He added: “Bridging this knowledge gap is crucial to empowering first-time buyers and fostering greater accessibility to the property market.”

However, the report says that not all renters want to buy; 22% have previously owned property, including 40% of those aged 55 and over.

Renting offers flexibility

The report also found that older renters particularly value the flexibility of renting, with 56% citing it as better suited to their current lifestyle, compared to a national average of 40%.

Aspiring homeowners face significant hurdles, with 53% of renters stating that financial incentives or support schemes are essential for homeownership.

However, awareness of options like the government-backed Shared Ownership scheme remains low, with 31% of consumers unaware of it, rising to 39% among 18–34-year-olds.

Among those familiar, 34% see shared ownership as a more affordable path to homeownership, and 19% view such schemes as vital for first-time buyers.

How much renters need to save

For those saving for a deposit, the average target is £30,347, with a goal to achieve this in 4.8 years.

This requires saving £526.86 monthly, excluding interest or inflation.

However, renters are currently saving just £230.80 per month on average, suggesting many are unlikely to meet their timeline without improved financial circumstances.

Meanwhile, a recent heatwave has significantly lowered utility expenses, with spending in this area increasing by just 1.2% year-on-year.