Barclays: 1 in 6 Homeowners eye up a move in 2025

1 in 6 Homeowners eye up a move in 2025, as growth in mortgage and rental spending slows

 

  • Rent and mortgage spending grew 1.8 per cent year-on-year in December, down from 8.2 per cent in November, as more homeowners benefitted from base rate reductions
  • Six in 10 renters say that it would be impossible to buy a home without an inheritance or loan from a family member
  • One in five recent first-time buyers report they had financial help from family to purchase their home
  • Two fifths of those intending to move home this year are prioritising finding a garage or driveway, closely followed by a garden or outside space
  • Barclays Property Insights combines research with data from across the Bank to give an in-depth perspective on housing trends in the UK

 

Rent and mortgage spending increased 1.8 per cent year-on-year last month, the lowest level of growth since August 2024, according to the latest Barclays Property Insights report. Though encouraging, costs continue to increase, and consumers’ confidence in their ability to afford their rental and mortgage payments dropped to 52 per cent in December (down 3 percentage points), the lowest level in 2024. 

Concerns around rising interest rates rose slightly to 62 per cent last month (up 3 percentage points), although they remain below the 63 per cent high recorded in June 2024. The Bank of England’s decision to reduce the base rate to 4.75 per cent in November mitigated some of these concerns, with one in five consumers (18 per cent) reporting feeling more optimistic in light of the recent rate reduction.

 

A boost onto the property ladder

Renters are still eying up the property ladder despite rising costs, with one fifth (22 per cent) believing that home ownership is within their reach within the next five years. However, obstacles remain – when identifying the biggest barriers to homeownership, two-fifths (40 per cent) say property prices, and 37 per cent cite the cost of a deposit.

Seeking to overcome these obstacles and save for a deposit, demand for the ‘Bank of Mum and Dad’ is high for the year ahead, as six in 10 renters (57 per cent) believe that it would be impossible to buy a home without an inheritance or loan from a family member.

Although perceived as a necessity, of those who have recently bought their first home, just 18 per cent report having had financial help from family. Rather than ask for a lump sum, one in 10 (12 per cent) opted to make use of a mortgage product which involves family members to increase their borrowing capacity, for example Barclays Family Springboard Mortgage.

 

Going it alone

Despite the prevalence of family support in the market, over a third (35 per cent) of renters saving to buy a home reported building their deposit themselves, preferring to reach milestone independently. Meanwhile, nearly one in five (17 per cent) are saving for a deposit with their friend or partner to help spread the cost.

Seeking support elsewhere, three in 10 new homeowners (29 per cent) opted to use a first-time-buyer scheme to assist their purchase, whilst a quarter (25 per cent) locked-into a longer mortgage term to help reduce monthly costs.

Of those saving for a deposit, 15 per cent have family that are unable to contribute, while one in 10 (10 per cent) have had offers of support for a deposit contribution from parents and/or family members.

To save for their housing fund, many are reviewing and trying to reduce monthly bills (41 per cent), which may be a contributory factor to the -6.7 per cent drop in utilities spending, despite rising energy prices. Other measures include reducing discretionary spending (39 per cent), signing up to cashback rewards (33 per cent) and cutting back on holidays (31 per cent).

 

New year, new home

Three in ten Brits (30 per cent) report having moved home in the last three years. Lifestyle improvements were the biggest motivation for moving (17 per cent), followed by wanting to be closer to family and friends (17 per cent) and finding a bigger home (15 per cent).

Looking ahead to 2025, one in six homeowners (16 per cent) intend to move this year. Recent drops in house prices are a cause for optimism, with one in 10 (9 per cent) considering previously unaffordable properties in more desirable areas to now be within their price range.

Topping the list of priorities among prospective buyers are: garages or driveways (40 per cent), gardens (39 per cent), and functional spaces (32 per cent), such as pantries or utility rooms.

 

Homeowners spruce up their properties

 

Consumer spending on household items had its smallest decline of 2024 in December (-0.3 per cent) as homeowners prepared for the festive season. The popularity of Christmas trees and seasonal decorations also boosted spending in Garden centres (+3.1 per cent).

Meanwhile, future-proofing properties is front of mind, as a quarter of homeowners (24 per cent) said they are updating their property to increase energy efficiency, whilst 28 per cent are making improvements to increase the sale value of their homes. Planning ahead, four in 10 (43 per cent) are considering renovating or redecorating.

Mark Arnold, Head of Mortgages and Savings at Barclays, said: “December brought an easing to the growth in rent and mortgage spending seen in previous months, as the Bank of England’s rate cut in November took effect.  

“Saving for a first home remains a huge challenge in the market, with the Bank of Mum and Dad still perceived as necessary by many hoping to get on the property ladder. However, there is broader sentiment of cautious optimism and many renters are establishing strong savings habits to build a deposit in the current economic landscape. This is helped by the recent softening of house prices and imminent stamp duty changes, which have motivated both potential buyers and sellers to act swiftly. “

EAN Breaking News

Breaking News from the team at Estate Agent Networking. Have a new story to share with us? Then please get in contact today! When and where we can we will refer to third party websites with a 'live link back' where news was released first.

You May Also Enjoy

Breaking News

Breaking Property News 02/04/25

Daily bite-sized proptech and property news in partnership with Proptech-X.   Made Snappy 360 appoints new CEO and Sales Director to accelerate growth in the property technology space Made Snappy 360, the fast-growing proptech company known for its virtual tours and floor plan technology, has appointed industry veteran Mark Beresford-Ward as its new Chief Executive…
Read More
Home and Living

Expert reveals the exact date parents must start renovating in time for summer

Loft and attic renovations are gaining popularity this spring, with nearly 11,000 monthly Google searches, highlighting them as one of the top home renovation projects Brits are planning in the coming weeks. Loft conversion specialist Sally McClean, loft conversion specialist from Enfields loft conversions Rooftop Rooms, shares the exact dates homeowners should start their renovations…
Read More
Breaking News

Nationwide HPI – Annual house price growth steady in March

Annual rate of house price growth remained stable in March at 3.9%, unchanged from February Northern Ireland remained the top performing area, with annual price growth accelerating to 13.5% London weakest performing region, with 1.9% year-on-year rise Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said: “UK house price growth remained stable in March…
Read More
Breaking News

Tenants and landlords must be aware of new electrical safety standards in Northern Ireland

Propertymark has urged tenants and landlords in Northern Ireland to be aware of new electrical safety standards that begin on 1 April 2025.   On 19 November 2024, the new regulations were approved by the Northern Ireland Assembly in response to a public consultation throughout September 2023.   From 1 April 2025, the regulations introduce the responsibility for…
Read More
Countryside
Breaking News

End to rent adjudication measures in Scotland

Letting agents across Scotland will welcome the news that the temporary rent adjudication measures end on 31 March 2025. The Cost of Living (Tenant Protection) (Scotland) Act 2022, which temporarily protected tenants by controlling rent, limiting evictions, and setting up rent review measures, ended on 31 March 2024. However, some of these measures were extended…
Read More
Breaking News

Propertymark comments on Stamp Duty threshold changes

Commenting on the Stamp Duty threshold changes commencing from tomorrow, 1 April, Toby Leek, President of NAEA Propertymark, the leading professional body for estate agents, said: “There will be many people completing on the sale of their home today to save potentially thousands of pounds from tomorrow onwards. “Some will also be disappointed that they…
Read More