Spending on rent and mortgages increased 4.5% in the year to September, says Barclays.

This follows a dip taking spending on rent and mortgages to a 17-month low in August, the bank’s Property Insights report reveals.

Spending on utilities dropped 12.5%, but this figure is set to rise as Ofgem’s winter energy price cap increase takes effect.

The bank says consumer confidence in household finances held steady at 70%, despite anticipated fluctuations in both housing and energy costs.

Mark Arnold, head of mortgages and savings at Barclays, says: “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 [Bank of England] 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.”