The latest Barclays Property Insights report finds that despite the increase, consumers displayed their highest level of confidence in the UK housing market this year.

Consumers were also confident in their ability to afford housing payments, with concerns over rising rent and mortgage costs reaching their lowest level since April this year.

More than half of consumers, 55%, are confident they can afford their monthly rental or mortgage outgoings, a 2% increase from the month prior.

Meanwhile, concerns around rising interest rates remained steady at 60%, down from a high of 63% in June 2024, following the Bank of England’s decision to hold the base rate at 5% in September.

Elsewhere, 26% of renters reported having confidence in the UK housing market, while 21% report that the recent drop in inflation has made them more confident in their ability to afford their housing costs.

When asked ahead of the recent Budget, nearly half of 18- to 34-year-olds said homeownership is within their reach within the next five years.

However, for older renters this drops off, as 28% of 35- to 54-year-olds think it will be possible in their lifetime.

Property prices are viewed as the biggest barrier to homeownership by 69%, while 60% cite the cost of a deposit.

A third (32%) note that their rental payments have increased over the last 12 months, impacting their ability to save for a property of their own.

Elsewhere, 18% are considering relocating in the next year, with relocating most popular among 18 to 34-year-olds (33%).

UK cities are leading the charge for a desired location by 30%, followed by 23% who would move to the countryside and 20% to the coast.

Of those living rent-free with family, friends or a partner, 40% want to move to a city or urban area.

Renters are the most inclined to make a move to the countryside at 28%, while owners are more likely to want to move to a city at 31%. Of those considering relocation, 15% are looking to move away from the UK completely.

The primary reason for people wanting to relocated was to save money (28%), this was followed by 27% of people who said it would be to improve lifestyle or wellbeing and 21% said to be closer to friends or family.

For those wanting to relocate, 18% said their motivation was to downsize, with this rising to 37% among over 55s.

Barclays head of mortgages and savings Mark Arnold says: “The housing market can be fickle, with housing trends and macro-economic factors having a direct impact on the monthly outgoings of millions of Brits.”

“However, what truly drives the state of play is how confident consumers are feeling. Whether contemplating a relocation, purchasing a first home or redecorating, we can see that Brits have growing faith both in the housing market and in their ability to spend.”

“Whilst spending on mortgages and rent has hit its highest level this year, so has consumers’ confidence in their homes. Even if interest rates fall as predicted, if this confidence is to be rewarded, more needs to be done to unlock greater capacity in the market to help drive down some of the financial barriers facing renters and homeowners as we look ahead to 2025.”