Barclays’ latest property insights report it found that first-time buyers are increasingly overcoming cost-of-living pressures by taking out lower-deposit mortgages.

First-time buyers accounted for 36% of the bank’s mortgages over the last 12 months but it reveals there is a “growing appetite for external support”.

Half of renters (49%) say buying a home would be impossible without a guarantor or family-backed mortgage, an rise from 42% in September.

Six in 10 say they would require financial incentives or homebuying support schemes to purchase a property, up from 51% in September.

The report also shows that confidence in the UK housing market dipped to 24% in October, down from 27% in September and marking the lowest level since January this year when it also stood at 24%.

Sentiment towards household finances remains broadly positive at 63% but dropped by 11% month-on-month.

Meanwhile, 37% consumers feel confident that they could afford to move home in the next 12 months if they wanted to.

This rises to 46% amongst homeowners, who cite manageable housing costs and bills (49%) as the primary cause for optimism.

This is followed by security of income and employment (27%) and being able to sell their property for a favourable price (26%).

Conversely, only 22% of renters feel confident they could afford to move in the next 12 months (buying or continuing to rent).

Cost-of-living is cited as the strongest impediment to confidence (38%), followed by ability to save for a deposit (34%), and the high cost of renting (32%).

Just 4% say recent or upcoming government policy changes are a contributing factor to low confidence.

Barclays data shows mortgage and rental spending rose 5.1% year-on-year in October, as the Bank of England Base Rate held in October.

In response to rising costs, 38% say they are cutting back on small luxuries, while 26% are reducing essential spending, such as groceries.

The report also found that after the Renters’ Rights Act came into law at the end of October, 33% believe it will will improve conditions and protections for tenants, with 28% confident that it will make it easier to challenge unfair treatment from landlords.

However, 24% worry the act could push rents higher due to limitations on evictions and bidding wars, which might cause landlords to increase the listing price.

But percentage concerned about rising rents dropped to 16% in October, down from 18% in September.

Barclays head of mortgages, savings and insurance Jatin Patel says: “The increasing appetite for low-deposit mortgages demonstrates that getting on the property ladder remains a priority for renters.”

“It also highlights how industry innovation, such as family-backed mortgages and support schemes, is crucial in helping more people responsibly attain their homeownership goals.”

“Despite overall confidence in the housing market softening, the appetite for homeownership remains strong. The turbulence of the last few years has slightly shifted the consumer mindset, where property is seen less of a ‘rite of passage’, but still considered an important financial milestone for long-term stability.”

Also commenting, Barclays chief market strategist Julien Lafargue adds: “With less than a week to go to the Autumn Budget and growing expectations that the Bank of England will lower interest rates once more in December, the UK real estate market appears primed to reaccelerate following a period of stagnation.”

“That said, beyond improved economic visibility and slightly lower interest rates, the data shows that addressing the affordability challenge should remain a key priority.”

Earlier this month, Barclays announced it would be increasing its maximum loan-to-income (LTI) to six times income.