Rent and mortgage spending increased 4.6% year-on-year in May, Barclays’ property insight reveals. 

The latest rent and mortgage spending figure is below the 5.2% recorded in April and marks the third consecutive month that growth has slowed.

Meanwhile, spending on utilities rose 4.4%, the first recorded rise in over a year, which is likely due to the energy price cap changes that came into effect on 1 April. 

The data found that 29% of mortgage holders report they either have or will be remortgaging in 2025. 

Of this group, 72% predict that their repayments will rise after remortgaging, estimating they will pay an extra £331 per month on average, the equivalent of £3,972 per year. 

Following the Bank of England’s recent rate reduction, 35% of those remortgaging this year are considering transitioning to a longer fixed-rate deal when they remortgage. 

Others who might be expecting further rate cuts in the short-to-medium term, would prefer more flexibility as 25% will now consider a standard variable rate (SVR) and 7% are looking for a tracker mortgage. 

Elsewhere, 44% of renters see a deposit as one of the biggest barriers to owning a home, with 22% of those saving setting aside an average of £254.90 each month.  

Across all age groups, renters anticipate it will take 4.5 years to accrue their deposit. 

In order to save, half of renters cite cutting back on day-to-day discretionary spending, and 45% are going on fewer holidays. Meanwhile, 31% have taken on extra work and 40% report starting a ‘side hustle’.   

The report also found that 23% of renters are confident that they’ll own a home in their lifetime, and 18% believe it is attainable within the next five years. 

Those who think ownership is on the cards anticipate making their first house purchase by age 38, on average.

However, that represents a gap of 10 years compared to current homeowners, who report being 28 on average when they made their first purchase.  

But there are still 58% who say that buying a home would be impossible without an inheritance or loan from family. 

Barclays head of mortgages, savings and insurance Jatin Patel says: “Homeowners nearing the end of a five-year fixed-rate mortgage are preparing for an increase in their monthly repayments as they transition to higher rates, prompting many to weigh up the certainty of a longer-term fix against the flexibility of a variable or tracker product.”

“However, the current interest rate environment has not dampened renters’ appetite for getting on the property ladder, many of whom are taking steps to save enough for a housing deposit.”

“For those ready to buy, our data shows that we’re currently in a buyers’ market when it comes to negotiations, with most sellers willing to accept offers under asking in order to facilitate their next move.”