Energy efficiency of homes is a growing concern following recent shocks to oil prices, with 56% now saying home upgrades are essential not optional, the latest Barclays Property Insights report reveals.
However, the report found that there is a high upfront price tag, with recent or upcoming renovators estimating the total cost to be £26,323.80 on average.
As a result, 49% of homeowners would prefer to buy a new or already recently renovated property to avoid spending on upgrades.
Homeowners increasingly unlock value from their homes to make renovations, with additional borrowing on an existing mortgage making up 11.7% of mortgage completions in February, the highest proportion in 12 months.
Meanwhile, three in 10 mortgage holders say they have either recently increased, or plan to increase, their borrowing as part of a remortgage.
Over a fifth (22%) have released or plan to release equity from their home.
Current and prospective homeowners also feel squeezed by external costs such as student loan repayments.
The report found that 44% of student loan holders say their repayments limit their ability to build long-term financial stability, with 41% noting their repayments make it harder to save for a home.
Barclays mortgage data shows the share of first-time buyers purchasing below the stamp duty threshold rose 7.6% year-on-year in February, as they save on costs.
Barclays head of mortgages, savings and insurance Jatin Patel says: “Rising external costs are reshaping how the UK approaches homeownership. Student loan repayments are slowing deposit saving for many aspiring buyers, while volatile energy prices are forcing households to think much harder about the long-term running costs of their homes.”
“With homeowners unlocking value in their property for upgrades, we’re seeing a clear shift towards investing now to improve future financial resilience.”
“Homeowners are understandably concerned about rising fixed-rates across the market, but it’s important to remember that there are options available.”
“You can typically lock in a new rate 90 days before your end of term date with your existing lender – or up to six months out if you are looking at moving lenders. This can provide peace of mind for those who want to protect themselves against short-term volatility, whilst planning ahead.”
