Rent and mortgage spending increased 5.2% year-on-year in April 2025, down slightly from 5.4% recorded in March, with many lenders reducing mortgage rates, according to Barclays Property Insights.

Confidence in household finances remained consistent month-on-month at 70% with many UK homeowners are taking prudent steps to decrease their mortgage term through overpayments.

Jatin Patel, Head of Mortgages, Savings and Insurance at Barclays, said: "Mortgage demand remains resilient, with encouraging signs that young renters feel more confident about entering the property market, despite high interest rates and an uncertain economic landscape.

“For mortgage holders fortunate enough to be able to make overpayments, it can be a great way to reduce the length of your loan term, or minimise the impact of possible rate shocks coming after a lower fixed deal.”

Despite the recent rises to stamp duty thresholds, renters’ confidence in their ability to own a home within five years recovered slightly in April with a fifth (20%) citing it as a possibility, compared to 15% in March.

The proportion of renters who see obtaining a mortgage as a barrier to owning a home also fell (18% vs 21% in March), following several high street lenders reducing their mortgage rates.