Nine in 10 buyers and sellers reported delays in completing purchases due to conveyancing and exchange issues, with timelines rising 21.7% year-on-year.
Homeowners are adapting to market conditions, as 42% of mortgage holders said they are now more likely to secure their remortgage rate earlier.
Transaction delays and exchange complications
While 88% of buyers and sellers reported that they experienced delays with exchanges, 29% said their property purchase fell through.
The figures showed that 21% cited conveyancing issues, 19% said estate agent delays and 18% reported difficulty finding suitable properties as causes for delay.
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Affordability strains even though deposits decline
Some 37% of renters said the cost of a deposit and 36% said high property prices were the barriers to homeownership.
Average deposit values across all ages fell 16.4% year-on-year to £57,209. London recorded one of the sharpest drops in deposit size, down 27.2% to £136,057.
The largest increase was reported in Northern Ireland, up by 14.9% to £41,008. The only other increase was seen in the North, which was up by 0.8% to £36,794.
Confidence in the UK housing market strengthened to 26% in May from 23% in April.
In spite of this, deposit values remain the top barrier to homeownership, as reported by renters.
Uncertainty is also affecting some households’ decisions. One in three consumers said they are now more likely to delay buying or selling because of economic volatility. Meanwhile, a third are increasing their savings or cutting back on spending to protect future impacts on their costs.
Trading off location for affordability
Among 18-29-year-olds, 24% reported that price is the most important factor when buying a home.
This was ahead of location and neighbourhood quality or safety, which were reported at 19% and 17% respectively.
However, 25% of Gen Z renters said they cannot afford to buy in their desired area.
Of those who said price is their top priority, nearly one in 21% would move over 25 miles away, suggesting location was the most common trade-off in favour of affordability.
Baby boomers – 62-80-year-olds – are more likely to compromise on the property’s condition, as reported by 22%, compared to 11% for Gen Z.
Jatin Patel, head of mortgages, savings and insurance at Barclays, said: “Adaptability has become the hallmark of the modern buyer. First-timers remain constrained by affordability, but will be flexible to achieve their goals, making trade-offs on location or property features to get on the ladder.
“Meanwhile, existing homeowners are acting more decisively, with many locking in rates earlier, or shifting their plans in response to volatility. Together, these trends may make for a more complex housing landscape, but reflect a clear determination among consumers to take control of their financial future.”
More than two-fifths of mortgage holders said they are now more likely to lock in an interest rate for remortgaging early.
Julien Lafargue, chief market strategist at Barclays, said: “The expected reopening of the Strait of Hormuz and the associated drop in oil prices mean that inflationary pressures may be more contained than feared in the coming months. This should give the Bank of England some breathing room, allowing the central bank to keep interest rates unchanged for the time being. Although any renewed political uncertainty could represent a headwind in the short term, the picture appears to be gradually improving for the UK real estate market.”
