No Christmas tree, cutting back on holidays, old decorations – owners and renters cut back as costs bite
Housing-related spending in the UK surged 8.2% year-on-year in November, marking a 14-month high, according to the latest Barclays Property Insights report.
Despite rising costs, consumer confidence in meeting rent or mortgage payments remains steady, although recent changes to Stamp Duty have disrupted some next-time buyers’ plans.
The report also highlights that improving home energy efficiency is becoming a key focus for many homeowners as winter approaches, reflecting a broader interest in long-term cost savings and sustainability.
Interest rate worries ease
Concerns over rising interest rates eased slightly last month, with 59% of respondents expressing concern, down from 63% in June. The Bank of England’s decision to lower its base rate to 4.75% in early November contributed to this shift.
Despite this improvement, the cost-of-living crisis continues to weigh on households. Four in ten Britons (41%) reported significant worry about escalating household bills, while 56% expressed concern about the rising cost of rent or mortgage payments.
To manage these financial pressures, 41% of respondents said they had adjusted their spending habits, and 29% indicated they were exploring ways to reduce their housing costs.
Energy efficiency gains momentum
Spending on utilities fell by 10.6% year-on-year in November, the smallest decline since July 2024. This reduction reflects higher energy prices under the October price cap and increased energy usage during colder months.
A quarter of homeowners reported making energy-efficient improvements to their properties, with the primary motivations being reducing long-term energy consumption (52%) and increasing property value (19%). The most popular upgrades included loft insulation (48%), wall insulation (37%), double or triple glazing (35%), and solar panels (33%).
However, the report underscores that a lack of understanding is a major barrier to wider adoption of retrofitting. Over one-third (35%) of homeowners said they were unsure which upgrades would best suit their homes. Additionally, affordability remains a concern, with 69% of homeowners in the "able to pay" group believing the government should subsidise retrofitting, and 67% calling for systemic changes in how homes are heated and cooled.
Barclays has outlined five recommendations for government action, including creating a Retrofitting Delivery Authority to address operational challenges and fostering greater collaboration across sectors.
Stamp Duty costs deter some buyers
Stamp Duty costs are proving to be a significant hurdle for homeowners planning their next move. Nearly a quarter (23%) cited it as the biggest barrier, rising to 39% among younger homeowners aged 18 to 34.
For renters, Stamp Duty changes announced in the October budget appear to have minimal immediate impact, with just 7% indicating the changes would delay their plans to buy a home. However, this figure jumps to 27% for renters in London. Overall, high property prices remain the largest obstacle for 64% of renters.
In efforts to save for a deposit, renters are cutting discretionary spending (37%), reducing monthly bills (37%), and cutting back on holidays (30%).
Holiday spending adjustments reflect financial pressures
As Christmas approaches, many Britons are curbing holiday-related spending. Two in five (42%) celebrating Christmas are reusing decorations, while 24% are opting for energy-efficient LED lights.
More than half (51%) of respondents are foregoing a Christmas tree or decorations altogether, with renters particularly likely to cut back (56%). Limited flexibility in rental properties also emerged as an issue, with 12% of renters saying their housing situation prevents them from decorating as they’d like.
The average Briton expects to spend £33.30 on holiday decorations this year, compared to £204.20 on gifts, £51 on social events, and £41.90 on travel to visit family and friends.
Outlook for mortgage holders and renters
Mark Arnold (pictured), head of mortgages and savings at Barclays, said the rise in housing costs offsets some optimism generated by the recent rate cut.
“For mortgage holders coming to the end of fixed rate deals set in or before 2022, they will only now be feeling the impact of interim rate volatility,” Arnold said. “These effects are then being passed through to the rental sector, through higher rents and reduced supply.”
He added that the growing interest in energy-efficient upgrades could deliver financial and environmental benefits but noted that greater awareness and support are needed.
“The government has a key role to play in bringing together the public and private sectors to harness consumer interest and accelerate efforts to make UK homes more energy efficient,” he said.
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