After a challenging year for the UK property market in 2023, Brits are still apprehensive about the current state of the housing market. Just one in four (25%) stated they were confident in the strength of the housing market.
However, despite concerns about the overall economic landscape, Barclays believes that consumers are still optimistic about their own personal finances, with only 15% stating that they do not feel confident in their ability to keep up with monthly mortgage or rental payments. This is a slight improvement from last month’s figure of 16%.
According to Barclays, household spending on homewares, electronics, and DIY fell by -4.1%, possibly to compensate for increased housing costs, suggesting that many have postponed renovations or home improvement. 40% of Brits have said they will not spend money on sprucing up their home or garden before summer.
Mark Arnold, Head of Savings and Mortgages at Barclays, said: “Consumers and lenders alike are anticipating a drop in interest rates this year, but optimism is understandably tentative as the market is still feeling the effects of last year’s volatility. Our data shows that Brits are still facing higher rent and mortgage payments, although costs are still slowing down over the longer term.”
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