0:01 AM, 20th March 2025, About 4 weeks ago
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Tenants aged 18-27 are facing soaring rents and many now fear homeownership is slipping further away as rising costs hurt their ability to save, Barclays reveals.
Its latest Property Insights report points to a phenomenon known as ‘rentflation’ which has seen nearly six in 10 renters (58%) have their housing costs climb over the past year.
The report found that 29% of all renters had seen a rent rise in the last six months.
But for Gen Z tenants, 36% report rent rises over that period.
Sian McIntyre, the bank’s managing director of mortgages and savings, said: “Renters are still determined to overcome barriers to homeownership, with this resilience testament to the value individuals place on investing in property.
“Our latest data indicates that prospective buyers are adapting their behaviour to get ahead of some of the volatility in the market.”
She added: “Encouragingly, amidst rising house prices, uncertainty around interest rates, and the upcoming changes to stamp duty, consumer confidence in the housing market is staying the course.”
Barclays found that the average tenant is now £105.90 worse off each month, but for Gen Z, the figure jumps to £134.70 – or £1,616 annually.
One in five renters (20%) pinpoint escalating rents as a major obstacle to buying a home.
Among young adults, 64% admit they’d struggle to purchase property without family cash or an inheritance.
That’s despite 57% actively saving for a deposit and 40% believing ownership is achievable within five years.
Barclays says that’s a more optimistic than the 23% recorded across all ages.
Barclays’ data also shows the average first-time buyer age has crept up to nearly 34 in 2024, from 32 two years ago, as affordability hurdles mount.
It also highlights a 7.7% annual rise in rent and mortgage spending this February, driven by homeowners shifting from low fixed-rate deals to pricier ones.
Confidence in the housing market has ticked up to 30% — the highest since October 2024.
Yet fears linger, with 88% of consumers worried about inflation and 64% fretting over interest rates, the highest levels since September 2023.
With changes to Stamp Duty Land Tax looming in England and Northern Ireland, buyers are racing to beat the deadline.
Those missing out face an average extra cost of £6,512, sparking a 26% surge in monthly mortgage completions since the Autumn Budget announcement.
First-time buyers lead the charge, with their share of purchases leaping from 29% to 36% — a 59% increase.
However, properties above the £425,000 stamp duty threshold are losing appeal, dropping from 21% of completions in October 2024 to 16% in February 2025.
Nearly one in eight (12%) of mid-transaction buyers warn they’ll abandon deals if they miss the March cut-off, while 21% of prospective movers plan to downsize and 18% are eyeing cheaper locations to ease the burden.
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