Renters lose confidence in UK housing market as mortgage and rent spending increases

Renters are being squeezed by rising bills, resulting in a loss of confidence in the housing market.

Rooftops of terraced houses
(Image credit: Bloomberg Creative via Getty Images)

Spending on rent and mortgages grew by 5.2% in the year to July 2025 while spending on utilities increased by 2.2% in the same period, according to new data from Barclays.

As fixed housing and utility costs rise faster than inflation, which the ONS reported as 3.6% in June, consumers are seeing more of their disposable income diverted away from savings in order to meet higher costs.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Daniel is a digital journalist at Moneyweek and enjoys writing about personal finance, economics, and politics. He previously worked at The Economist in their Audience team.

Daniel studied History at Emmanuel College, Cambridge and specialised in the history of political thought. In his free time, he likes reading, listening to music, and cooking overambitious meals.