The Barclays Property Insights data found that this came as a number of lenders continued to lower mortgage rates.
The bank’s research found that consumer confidence in household finances stayed firm at 70% month-on-month, as people made mortgage overpayments to decrease their mortgage term.
It found that 23% of mortgage holders were overpaying their mortgage, paying an additional £221 per month on average or £2,647 per year. Barclays said this could reduce a mortgage term by four years on average.
Confidence in the housing market was also flat month-on-month at 29%, with expectations that the base rate would be cut on 8 May and result in lower mortgage rates. Reflecting this, the research conducted between 18 and 22 April showed there was slightly less concern around interest rates, falling from 63% of respondents in March to 61% in April.
Will Hobbs, managing director at Barclays Private Bank and Wealth Management, said: “The UK economy’s cyclical pulse has been strengthening a little in the last few months. Household incomes have continued to grow faster than inflation and that has been showing up in consumption.
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“The uncertainty created by the US tariffs will certainly have some dampening effect. However, there are potential offsets in the form of lower energy prices and the dramatic changes happening in Europe. The latest read on inflation suggests a little more flexibility for the Bank of England too, ahead of tomorrow’s decision.”
Council tax impact on homeowners
Barclays found that 30% of people had seen a rise in housing costs in the last 12 years, with council tax cited as the main factor.
This had a greater effect on second homeowners, following the change introduced in April, which means councils can charge up to a 100% council tax premium on second homes.
Some 7% of respondents to its poll said they owned a second property, and those impacted by the change said it would increase their bills by £840.10 per year on average.
Because of this, 35% of second homeowners said they were considering selling their additional home.
Homeownership aspirations among renters
Renters were more optimistic about their chances of getting onto the property ladder in the next five years, with a fifth saying this was possible, up from 15% in March.
The share of renters who saw getting a mortgage as a barrier to homeownership dropped from 21% to 18% month-on-month.
This coincided with a rise in the share of renters saving for a deposit to buy a home, increasing from 22% in March to 27% in April.
Jatin Patel, head of mortgages, savings and insurance at Barclays, said: “Mortgage demand remains resilient, with encouraging signs that young renters feel more confident about entering the property market, despite high interest rates and an uncertain economic landscape.
“For mortgage holders fortunate enough to be able to make overpayments, it can be a great way to reduce the length of your loan term, or minimise the impact of possible rate shocks coming after a lower fixed deal. It’s important to always weigh up the cost savings with other financial goals and commitments, as well as potential early repayment fees.
“The Bank of England’s decision on Thursday will determine how optimistic we can be, but with mortgage rates dipping below 4%, and a lower energy price cap on the horizon, there are positives to be found amongst current market turbulence.”
