Barclays: Mortgage And Rent Spend Grew 4.5% In September

• Spending on rent and mortgages grew 4.5 per cent year-on-year in September, climbing back up after a 17-month low in August
• Utilities spending decreased -12.5 per cent, a welcome sign before the increase in Ofgem’s energy price cap from 1 October begins to impact household bills
• Barclays Property Insights combines data and research from across the Bank to give an in-depth perspective on emerging housing trends in the UK

Barclays Property Insights reveals that the increase in rent and mortgage spending accelerated in September, increasing 4.5 per cent year-on-year, following August’s slower growth. This comes as the Bank of England held the base rate in September’s MPC meeting. Meanwhile, utilities spending dropped -12.5 per cent, though this is unlikely to persist as winter approaches, as Ofgem’s energy price cap increase came into effect on 1 October.

Encouragingly, consumer confidence in household finances held steady month-on-month at 70 per cent, despite anticipated fluctuations in both housing an energy costs. There was no increase in the proportion of consumers not confident in their ability to meet rent and mortgage payments, remaining at 15 per cent, suggesting that despite interest rates holding, Brits are at least satisfied that further hikes are not on the immediate horizon.

Mark Arnold, Head of Mortgages and Savings at Barclays, said: “While consumer costs continue to be impacted by the ongoing volatility in the housing market, we are still encouraged by the long-term downward trajectory of rent and mortgage spending. The next MPC decision in November will certainly be one to watch, although we recognise that there are multiple complex issues impacting the housing market beyond just interest rates, including supply and demand pressures. I hope we can work alongside government and industry to tackle some of these over the coming months.”

Source : Barclays

Image : OKrasyuk / iStock / 2066127361

For all the very latest news and intelligence on the UK's largest home improvement and garden retailers, sign up for the Insight DIY weekly newsletter.