Spending on rent and mortgages jumped in October, says Barclays

Annual growth in consumer spending on rent and mortgages accelerated last month to reach its highest level since September 2023, according to a major bank.

Spending on rent and mortgages rose by 6.4% annually in October, the Barclays Property Insights report found.

Mortgage and rental payments data was sourced from Barclays current accounts.

The bank also commissioned a survey of 2,000 people in October, which indicated that more than half (55%) of of those questioned were confident their monthly rental or mortgage outgoings were affordable, up from 53% in September.

Property prices were viewed as the biggest barrier to home-ownership by seven in 10 (69%) renters, while 60% expressed concerns about the cost of a deposit.

Nearly a third (32%) of renters said their rent had increased over the past 12 months.

Around a fifth (18%) of people surveyed by Opinium Research were considering relocating in the next year, rising to 33% of 18 to 34-year-olds.

The research was released ahead of the Bank of England releasing its base rate decision on Thursday.

Analysts have predicted that the Bank could trim the base rate by a quarter point to 4.75%.

Mark Arnold, head of mortgages and savings at Barclays, said: “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 home-owners as we look ahead to 2025.”

Meanwhile, Revolut said its data tracking millions of card payments per month indicates a surge in spending on home improvement projects.

This includes growth in spending on architectural firms and surveyors and trade contractors, as renovations get under way ahead of Christmas.

Revolut customers are also spending more on flooring, stonework, plastering, heating and plumbing, soft furnishings and furniture.

Fiona Davies, head of growth for UK, Ireland and Nordics at Revolut, said some home-owners in the UK “are embracing DIY and investing in everything from structural work to interior upgrades, indicating a growing trend to enhance existing spaces rather than face the costs and challenges of moving”.