Rent and mortgage spending increased 5.2% year-on-year in April, down slightly from 5.4% in March, as many lenders reduced mortgage rates, Barclays reveals.

The lender’s latest property insight found that confidence in the UK housing market remained in-line with March 2025 at 29%, amid speculation that the Bank of England will cut the base rate on 8 May and mortgage rates will drop further.

Meanwhile one in four mortgage holders are taking prudent steps to decrease their mortgage term through overpayments.

These additional payments average £221 per month on top of their regular repayments, or £2,647 per year, with over-payers predicting this will reduce their mortgage term by four years on average.

Three in 10 of those who have seen a rise in housing costs in the last 12 months cited council tax as the biggest increase.

From the beginning of April, further council tax premiums of up to 100% now can be charged on second homes, impacting the 7% of homeowners surveyed who reported owning a second property.

Those affected say their bills are set to rise by £840.10 per year on average. As a result, 35% of second homeowners say they will explore selling their additional property.

Despite recent increases to stamp duty thresholds impacting the cost of buying, renters’ confidence in their ability to own a home within five years recovered slightly in April.

A fifth cited it as a possibility, compared to 15% in March.

The proportion of renters who see obtaining a mortgage as a barrier to owning a home also fell from 21% in March to 18% in April, following several high street lenders dropping their mortgage rates last month.

The rise in confidence correlates with an uplift in renters saving for a deposit to buy a home, with 27% doing so in April, compared to 22% in March.

Barclays head of mortgages, savings and insurance Jatin Patel says: “Mortgage demand remains resilient, with encouraging signs that young renters feel more confident about entering the property market, despite high interest rates and an uncertain economic landscape.”

“For mortgage holders fortunate enough to be able to make overpayments, it can be a great way to reduce the length of your loan term, or minimise the impact of possible rate shocks coming after a lower fixed deal. It’s important to always weigh up the cost savings with other financial goals and commitments, as well as potential early repayment fees.”

“The Bank of England’s decision on Thursday will determine how optimistic we can be, but with mortgage rates dipping below 4%, and a lower energy price cap on the horizon, there are positives to be found amongst current market turbulence.”