The latest Barclays Property Insights report shows that while housing affordability is improving slightly, rental supply remains tight. Spending on rent and mortgages increased by just 1.1% in August, the slowest growth since March 2023, following a 0.25% cut in the Bank of England’s Base Rate. This has helped boost confidence in household finances to 70%, up from 65% in July.
The rental market remains competitive, especially as students begin their search for accommodation. According to 17% of respondents, the influx of students is making it harder for young renters to find housing. Phil Spencer advises landlords to time their property listings carefully, suggesting that waiting until after the back-to-school rush might attract longer-term tenants.
Confidence in the UK property market has risen from 25% to 29% over the past four months. Barclays attributes this cautious increase partly to the fact that 78% of mortgage holders are on fixed-rate deals, so the recent rate cut impacts only a few immediately. Mark Arnold from Barclays emphasizes that while interest rates matter, confidence in economic stability is crucial for consumer spending and property market activity.
