The data indicates that renters are experiencing a sharper reduction in disposable income compared to homeowners, contributing to declining confidence in both their prospects of entering the property market and the overall housing sector

Rent and mortgage payments in the UK rose by 5.2% year-on-year in July, while utility spending increased by 2.7%, according to recent figures from Barclays Property Insights.

The data indicates that renters are experiencing a sharper reduction in disposable income compared to homeowners, contributing to declining confidence in both their prospects of entering the property market and the overall housing sector.

The proportion of renters saving for a deposit dropped to 17% in July, down from 31% in January, marking a six-month low. House prices have now surpassed deposit size as the main obstacle to homeownership, cited by 38% of respondents compared to 35% who pointed to deposit costs.

Barclays also found that 62% of renters have seen or expect to see rent increases this year, further limiting their ability to save. Only 12% of renters believe they could purchase a home within the next year, with this figure rising slightly to 16% for those looking ahead five years. In June, this five-year outlook stood at 19%.

Affordability remains a major concern, with 37% of renters saying they cannot afford to buy in their current or preferred area. Additionally, 28% reported a lack of interest in homeownership, the highest level recorded this year. The share of renters actively saving for a deposit is at its lowest point in 2025, with common strategies including reducing non-essential spending (14%), cutting back on holidays (11%), and seeking additional income through side jobs (8%).

Interest rate cuts earlier this year have led 55% of all consumers to view renting as more expensive than paying a mortgage. This perception is more common among homeowners (61%) than renters (42%).