"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"
- Mark Arnold, head of mortgages and savings at Barclays
Spending on rent and mortgages grew by 4.5% year-on-year in September, climbing back up after a 17-month low in August, according to new data from Barclays.
This comes as the Bank of England held the base rate in September’s MPC meeting. Meanwhile, utilities spending dropped by 12.5%, though this is unlikely to persist as winter approaches, as Ofgem’s energy price cap increase came into effect on 1st October.
Encouragingly, 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.
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.”
