The increase in rent and mortgage spending accelerated in September, rising 4.5% year-on-year, following August’s slower growth, according to Barclays Property Insights.
This comes as the Bank of England held the base rate in September’s MPC meeting.
Meanwhile, utilities spending dropped -12.5%, though this is unlikely to persist as winter approaches, as Ofgem’s energy price cap increase came into effect on 1 October, the report said.
Consumer confidence in household finances held steady month-on-month at 70%, 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%, suggesting that despite interest rates holding, Brits are at least satisfied that further hikes are not on the immediate horizon, Barclays Property Insights concluded.
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.”
