Barclays issues warning to customers aged between 35 and 54 after feedback

Barclays has issued a warning over younger people affording homes - after some notable feedback in its latest spending report. Rent and mortgage spending grew by 6.4 per cent in October, the highest rate of growth recorded since September 2023, ahead of today’s MPC announcement on the Base Rate.

Despite the increase, consumers report feeling more confident in their ability to afford rent or mortgage payments. Nearly half of 18-34-year-old renters are hopeful they will own a home within the next five years, but only 28 per cent of 35-54s think it will be possible in their lifetime.

When asked ahead of the recent government Budget, young renters were hopeful about their prospects, as nearly half of 18-34-year-olds said homeownership is within their reach within the next five years. However, for older renters this drops off, as only three in 10 of 35–54-year-olds (28 per cent) think it will be possible in their lifetime.

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Mark Arnold, Head of Mortgages and Savings at Barclays, said: “The housing market can be fickle, with housing trends and macro-economic factors having a direct impact on the monthly outgoings of millions of Brits. However, what truly drives the state of play is how confident consumers are feeling. Whether contemplating a relocation, purchasing a first home or redecorating, we can see that Brits have growing faith both in the housing market and in their ability to spend.

“Whilst spending on mortgages and rent has hit its highest level this year, so has consumers’ confidence in their homes. 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 homeowners as we look ahead to 2025.”

Barclays Property Insights combines data and research from across the Bank to give an in-depth perspective on emerging housing trends in the UK.