Barclays Property Insights Report Shows Interesting Trends
As mortgage brokers, we know that in this day and age, the property and mortgage market is far from simple to understand, and getting your head around trends and what they mean can be a bit of a nightmare. The latest Barclays Property Insights Report sheds light on the trends, challenges, and faint glimmers of hope in the UK housing sector. In my opinion, the findings show a market grappling with affordability challenges while offering cautious optimism for those determined to achieve their homeownership dreams in 2025. To make the findings more easily digestible for our clients, here’s my take on the report and what it means for you.
Barclays Property Mortgage Affordability: A Welcome (But Modest) Relief
According to the report, rent and mortgage spending grew by just 1.8% year-on-year in December 2024—the slowest rate of growth since last summer. This is a step in the right direction in my eyes, but let’s not break out the champagne just yet. Costs are still climbing, albeit at a gentler pace, and borrower confidence in meeting monthly payments continues to wane sadly. Only 52% of respondents felt secure in their ability to keep up with rent or mortgage obligations according to the research carried out by Barclays. A sobering statistic as we head into 2025 that really highlights the struggles that many borrowers are facing.
The silver lining? I promise that there is one! The Bank of England’s decision to cut the base rate to 4.75% is beginning to trickle through, offering some relief to existing homeowners. However, rising interest rates remain a concern for 62% of people—a reminder that affordability will remain a bit of a tightrope walk for the foreseeable future.
Is The Bank Of Mum And Dad Realistic When Buying A Property?
The report also found out that six out of ten renters believe they’ll need financial help from family to buy a home. This belief obviously makes the idea that homeownership is out of reach for anyone not blessed with wealthy parents even more troubling. But here’s the reality check: apparently, just 18% of recent first-time buyers actually received family financial assistance.
Such a small percentage of first-time buyers receiving family help is leading to more and more new buyers using other alternative help from banks. Products like Barclays’ Family Springboard Mortgage are helping buyers borrow more responsibly without outright gifts from family. Meanwhile, 12% of first-time buyers used mortgages involving family guarantees, and 17% opted to share the cost with a partner or friend. These strategies show that while family support is helpful, it’s not as essential as many think, thankfully.
Sacrifices And Determination: The New Normal
Saving for a deposit has become a Herculean task. OK well perhaps not as extreme. But it can really be a struggle to save, especially when the cost of living keeps on rising. Incredibly, over a third of renters reported saving independently. A testament to sheer grit. Others are cutting discretionary spending, embracing cashback schemes, and slashing holiday budgets to scrape together their deposits.
Even so, obstacles continue. House prices and hefty deposit requirements remain the two biggest barriers for 40% and 37% of aspiring homeowners, respectively. Yet, a surprising 22% of renters believe homeownership is achievable within the next five years. Optimism like this is the fuel that powers this market, but it must be paired with realistic planning. Even by just having a quick phone call with a mortgage advisor, you can realistically determine how long it might take for you to save for your first home purchase.
Lifestyle And Features
Barclays’ report reveals a shift in priorities among buyers and movers. The wish lists are clear: garages or driveways (40%), gardens (39%), and functional spaces like utility rooms (32%) top the charts. These aren’t just aspirational; they reflect practical needs as more people work remotely and seek multi-functional homes.
Interestingly, recent house price drops are emboldening some buyers to explore areas previously deemed unaffordable. This is a critical moment to seize opportunities, especially with stamp duty changes incentivising swift action.
Future-Proofing Property Value
Nearly half of homeowners (43%) are considering renovations or redecoration. While festive spending provided a seasonal boost, many homeowners are focusing on energy efficiency (24%) and sale value enhancements (28%). As brokers, we see these trends not just as a way to improve homes but as strategic moves to maximise property value in a fluctuating market.
My Takeaway: The Time To Act Is Now
The Barclays report underscores a central truth: the market is tough, but opportunities exist for those who act decisively and think creatively. With interest rates stabilising, house prices softening, and innovative products like family-backed mortgages, the door to homeownership isn’t shut—it’s just harder to open. With that in mind, everyone who is hoping to get a mortgage in 2025 or beyond should have an initial consultation with a mortgage advisor to explore their options. If any of these Barclays property insights resonated with you, please give our team at Oportfolio Mortgages a call today to see how we might be able to help.
