The bank points out that these accommodation costs are “far below” the 12.2% increase posted last June — when growth was at its highest — and the lowest year-on-year increase on file since March 2023. 

But it adds that 16% of its customers “are not confident about their ability to meet their mortgage or rental payments”, and 18% of those with these payments are adjusting their spending habits to cope with rising housing costs.  

More broadly, consumers’ confidence in their general household finances remained steady in March, at 67%, says the bank after studying data from millions of its account holders. 

To generate additional income, 3% of UK homeowners have started renting out a room in their house over the past year.  

However, this figure rises to 12% for homeowners in London.  

Barclays head of savings & mortgages Mark Arnold says: “Non-essential spending is still reeling from last year’s spike in housing costs, which caused both homeowners and renters to cut back while looking for additional sources of income – such as delaying renovations and renting out spare rooms. 

“However, there are reasons to be optimistic – our data shows that housing costs are stabilising, the inflationary tide is easing, and interest rates are predicted to fall over the coming months, all of which should translate into increased consumer confidence and spending.” 

Barclays mortgage and rental payments data is sourced from its current accounts, covering transactions identified as direct debits and bank transfers to mortgage lenders and private landlords.  

It also includes payments to multiple lenders between 17 February and 16 March, compared to 18 February and 18 March last year.