Rent spending grew 4.4 per cent year-on-year in August, according to an analysis by Barclays Bank.

Based on its own customer data it says this growth is down from 5.2 per cent in July, following the Bank of England’s base rate reduction. 

From the same survey it says that although confidence in the housing market tipped back up slightly to 29 per cent, monthly outgoings remain front of mind, with 60 per cent concerned about rising mortgage and rental costs.

Over a fifth (22 per cent) of renters believe homeownership is achievable within five years, up from 16 per cent last month and the highest level since February. However, amidst reports of record high house prices, nearly half (47 per cent) cite this as a major barrier to ownership, up from 38 per cent in July.

Some three-fifths (61 per cent) of renters have seen or expect to see their housing costs increase this year, squeezing their ability to save. To manage expenses, 40 per cent are reviewing their budgets, 43 per cent are cutting back on small luxuries, and 27 per cent are reducing holiday spending.

Meanwhile Barclays mortgage data also shows that three-bedroom homes are the most popular choice for properties, making up 46 per cent of all purchases in August. 

Millennial homeowners, age 28 to 43, are the most likely age-group to prioritise extra space – over a fifth (22 per cent) say they bought a property with more bedrooms than they currently need, to avoid upsizing later. This compares to just 13 per cent across all ages.

First-time buyers are increasingly turning to houses, with semi-detached properties making up over a third (33.5 per cent) of August’s first-time purchases, up 1.7 per cent year-on-year. Meanwhile flats declined in popularity by 2.7 per cent, accounting for a fifth (19.6 per cent) of first-time buyer homes.

A third (33 per cent) of recent Gen Z buyers, aged 18 to 27, said they bought a ‘forever home’ so that they wouldn’t have to move. Similarly, nearly three in 10 (27 per cent) of all recent buyers said they intend to stay in their new home for at least 10 years.

A bank spokesperson says:“Despite facing challenges, the UK economy continues to demonstrate resilience. Our data shows that a period of caution is emerging, with over half of businesses delaying investment decisions until after the Autumn Budget, and consumers are also taking a ‘wait and see’ approach as they anticipate any changes that may lie ahead.

“However, looking beyond the immediate horizon, the combination of economic factors such as moderating inflation, and a more accommodative stance from the Bank of England should provide a supportive backdrop for the housing market. These considerations may help sustain demand and improve affordability, even as broader economic uncertainty lingers.“