Recent data from Barclays reveals that homeowners nearing the end of their fixed-rate mortgage terms are encountering higher remortgaging rates, leading to a significant increase in monthly payments. Despite the Bank of England's base rate decrease from 5.25% to 4.5%, many borrowers are not experiencing reduced repayments. The majority of mortgage holders remain on fixed-rate deals, which only adjust when their term concludes. Of those who have recently remortgaged, 14% reported an increase in monthly payments, with nearly 60% facing an average rise of £243 per month or £2,916 annually. This trend is primarily attributed to mortgages taken out before mid-2022 when rates were lower. Conversely, a smaller percentage experienced decreased costs, likely due to securing shorter-term products during the higher-rate period. Additionally, spending on rent and mortgages grew by 2% year-on-year in January.

The shift in mortgage costs has been particularly challenging for homeowners whose fixed-rate terms have expired. Many secured their mortgages before mid-2022, when interest rates were significantly lower. As these terms come to an end, individuals are being pushed into remortgaging at higher rates. Sian McIntyre, managing director of mortgages and savings at Barclays, noted that while there was a slight increase in mortgage and rental expenses at the start of 2025, consumer confidence in making payments remained intact. The reduction in the base rate this month signals a positive direction for the market. Furthermore, the focus on housebuilding has intensified, with new developments seen as essential to addressing the housing shortage.

New builds are increasingly viewed as part of the solution to the UK’s housing challenges. Two-thirds of respondents believe that new constructions are necessary to meet demand, recognizing both the necessity and the advantages they bring to communities. The appeal of new builds is especially strong among younger demographics, with 52% of 18–34-year-olds expressing interest in purchasing one. Factors influencing the decision to buy a new build include the property being brand new, its location, the absence of a property chain, and modern features. Regional variations also highlight different preferences, with residents in Northern Ireland, London, and the West Midlands showing the highest inclination towards new properties.

Despite the challenges, optimism persists among potential homebuyers. One in five renters believe they will own a home within the next five years, while three in ten are actively saving for a deposit. Although confidence in the housing market has dipped to a six-month low, with just 24% of buyers feeling optimistic, many still see housebuilding as a crucial component in solving the housing shortage. Rising property prices and upcoming stamp duty changes add pressure, but energy efficiency remains a top priority for aspiring homeowners. The market continues to evolve, balancing aspiration and affordability as buyers navigate these shifts.