Rent and mortgage spending in the UK grew by 2.0 per cent year-on-year in January, according to the latest Barclays Property Insights report. Despite ongoing economic pressures, consumer confidence in affording these payments remained steady at 52 per cent, reinforcing the vital role landlords play in providing secure housing.
Landlords continue to provide essential housing despite economic shifts
The modest increase in rent and mortgage payments—up from 1.8 per cent in December – suggests a stabilising property market. With inflation pressures easing and the Bank of England recently lowering its base rate, there is cautious optimism among landlords and tenants alike.
However, the broader housing market faces hurdles, as confidence in the sector dropped to a six-month low of 24 per cent. Property prices remain a key concern for renters, with 51 per cent citing high prices as the biggest barrier to home ownership – an 11 per cent increase from December. Similarly, 44 per cent reported that deposit costs were a major obstacle, up from 37 per cent.
Despite these challenges, many renters remain hopeful. Nearly a quarter (23 per cent) believe they could step onto the property ladder within five years, and three in ten (31 per cent) are actively saving for a deposit. For landlords, this sustained demand indicates a continued need for high-quality rental properties, particularly as mortgage holders navigate shifting interest rates.
Younger buyers attracted to new builds as landlords see stable demand
New builds continue to attract interest, particularly from younger buyers, with two-thirds (65 per cent) of UK adults supporting the construction of more housing developments. Many view new builds as essential for addressing the country’s housing shortage, with 42 per cent recognising the economic benefits these projects bring to local communities.
For landlords, this presents an opportunity, as over 40 per cent of prospective buyers – rising to 52 per cent among 18–34-year-olds—would consider purchasing a new build property. Compared to older generations, younger buyers are three times more likely to see new builds as better value for money (34 per cent vs. 11 per cent for over-55s).
Regionally, buyers in Northern Ireland (55 per cent), London (51 per cent), and the West Midlands (46 per cent) showed the strongest preference for new builds. The most common motivations for purchasing new properties included location (51 per cent), avoiding property chains (38 per cent), and modern features (35 per cent), all of which highlight the growing appeal of new developments for landlords considering their next investment.
Energy efficiency remains a key focus for landlords and tenants
With rising energy costs, both landlords and tenants are prioritising energy efficiency. Barclays data revealed a 10.1 per cent drop in spending on utilities in January, despite Ofgem increasing the energy price cap.
This decline suggests a proactive approach by homeowners and landlords alike. Nearly three in ten (28 per cent) homeowners are upgrading their properties to improve energy efficiency, while 21 per cent of renters are considering moving to a more efficient home to cut down on bills.
For landlords, investing in energy-efficient properties not only attracts tenants looking to reduce their costs but also ensures compliance with upcoming regulations. “Housebuilding is increasingly a focus, with the nation’s outlook on new developments pragmatic,” said Sian McIntyre, Managing Director of Mortgages and Savings at Barclays. “Prospective buyers will continue to look for ways to pair aspiration and affordability, with energy efficiency a clear priority when choosing the right home.”
Stability in rental demand provides reassurance for landlords
As the mortgage market adjusts to shifting rates, landlords remain in a strong position to provide much-needed housing. While the Bank of England’s base rate has fallen from 5.25 per cent to 4.5 per cent, the impact on mortgage repayments varies.
Among those who have remortgaged in the past year (14 per cent), nearly 60 per cent reported an average increase of £243 per month. However, 10 per cent of borrowers have seen their repayments decrease, likely those who secured a new deal as rates began to stabilise.
For landlords, these trends indicate a resilient rental market, with consistent demand from tenants facing affordability challenges in home ownership. With energy efficiency improvements and new build developments offering further opportunities, landlords remain well-placed to provide stable, high-quality housing in an evolving market.
