Latest data gleaned from millions of Barclays current accounts shows that UK housing costs are now reaching a level of stability as in the past twelve months the market prices experienced the lowest uplift in March 2024.

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Barclays says UK homeowners and renters have only had to spend just 1.8 per cent more on rent and mortgages when compared to last year which was significantly lower than the 12 .2 per cent increase in June 2023 when the market growth was at its peak.

According to the bank 10 per cent of homeowners are retrofitting their properties to improve energy efficiency and to protect their pockets against future energy cost rises. Small numbers of homeowners looking to generate extra income are renting out a room in their house over the past year – 3 per cent – but in London this has drastically increased to 12 per cent of homeowners doing this.

Many PRS tenants stated they are finding it hard because of the supply/demand factor with 22 per cent saying there is too much competition resulting in less value-for-money. As the current cost of living makes it difficult to build sufficient savings with one in four renters saying the cost of a deposit is the biggest barrier to home ownership.

Spending on essential items grew 2.4 per cent in March  close to February’s 2.3 per cent. Grocery spending, was just up by 2.7%, which is its slowest growth since September 2022 thanks to lower price inflation reaching its lowest level of 5 per cent since January 2022.

Mark Arnold, Head of Savings & Mortgages at Barclays UK, says: “Non-essential spending is still reeling from last year’s spike in housing costs, which caused both homeowners and renters to cut back while looking for additional sources of income – such as delaying renovations and renting out spare rooms.

“However, there are reasons to be optimistic – our data shows that housing costs are stabilising, the inflationary tide is easing, and interest rates are predicted to fall over the coming months, all of which should translate into increased consumer confidence and spending.”