Consumer spending on rent and mortgages rose by 4.3% in the year to June, down from 4.6% recorded over the year to May.

Spending on utilities increased by 1.2%, with costs mitigated by the recent heatwave and further relief set to come from the reduction in the price cap last week.

Renters who aspire to own their own homes are hoping to save £30,000 towards a deposit in 4.8 years, on average, but few are currently on track to meet their target, the bank’s research found.

Savers would need to put away around £527 a month to meet this goal.

However, of the 22% of renters currently saving towards a deposit, the average amount saved is less than half the target at £231 per month.

Barclays also reports that half of renters believe homeownership is unattainable without financial incentives, but there is a lack of awareness of schemes already on offer.

It found that 31% of all survey respondents hadn’t heard of shared ownership and 39% of those aged 18-34 did not know about it.

Looking at wider consumer sentiment, confidence in the UK housing market fell 3 points to 27% as the Bank of England Base Rate was held at 4.25%.

But there was an easing of concerns around the barriers to home ownership as mortgage rates edge down, its findings suggest.

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

“While lower mortgage rates are providing some relief, affordability remains a challenge.

“Our findings underscore the importance of tailored solutions to address the diverse needs of today’s prospective homeowners. 

“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.

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