According to Barclays’ Property Insights, which collated data from millions of Barclays current accounts and combined it with consumer research, while rent and mortgage spending was on the up, there were “signs of optimism” emerging, pointing to falling inflation and energy prices and increased spending on home improvements.

The report found that six in 10 of those surveyed said that the inflation slowdown had made it easier to live within their means, and around 56% said they felt more confident in their household finances.

Confidence in the strength of the housing market also increased from 25% in April to 27% in May.

Barclays added that the month-on-month difference in housing costs was marginal at negative 0.01%, showing consumers may not be feeling worse off in the short term.

This can be seen in the fall in consumer spending on utilities, which fell 12.5% in May due to the decrease in the Ofgem energy price cap in April.

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Homeowning vs renting

Around a tenth of people who have never owned a property said they felt under societal pressure to be a homeowner.

However, nearly a third said that the cost of the deposit was the biggest barrier to owning a home, and 18% said that they were delaying getting on to the property ladder due to higher interest rates.

One in seven renters said that they would prefer to rent rather than own a home due to heightened flexibility.

Around 12% said that they prefer renting due to low confidence in the strength of the UK housing market.

The Bank of Mum and Dad is also growing in usage, with 19% of those aged 18-34 years old using such financial support, compared to 10% of the over-55s.

Nearly a third bought a home as it was cheaper than renting long term, and 24% said it was a good investment.

Mark Arnold, head of savings and mortgages at Barclays, said: “Our latest spending figures show that rent and mortgage payments are still posing a challenge for consumers. However, there are encouraging signs of improvement ahead, with falling inflation and interest rate cuts in Europe giving hope that the Bank of England will follow suit in the coming months.

“Many lenders are finding creative solutions to the problems faced by first-time buyers. Products like Barclays’ Springboard mortgage or Kensington Mortgages’ flexible lending criteria help to overcome some of the barriers and make homeownership more feasible.”