Barclays recently unveiled new mortgage data revealing that first-time buyers increasingly favour low-deposit home purchase options, with deposits under £20,000 representing 22.1% of completions in October—an 8.6% rise from previous figures.
This trend underlines the financial challenges many prospective buyers face. According to Barclays’ research, 60% of renters say they would need financial incentives or homebuying support schemes to step onto the property ladder. Nearly half (49%) also indicated that buying a home would be impossible without a guarantor or family-backed mortgage—a figure that rose from 42% in September.
Confidence in the housing market dipped slightly to 24% in October, down 3 percentage points from September and marking the lowest confidence level since January. Despite this, sentiment about household finances remains relatively positive. Barclays’ Property Insights team combines proprietary mortgage data with consumer research to track these evolving trends in the UK housing market.
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First-time buyers continue to play a vital role in the market, making up 36% of Barclays mortgages over the past year despite increased cost pressures. While 37% of consumers feel confident about moving home within the next 12 months, only 22% of renters share that confidence. Cost-of-living concerns were cited by 38% as a primary factor dampening their housing market confidence.
Jatin Patel, Head of Mortgages, Savings and Insurance at Barclays, commented: “The rising interest in low-deposit mortgages shows that homeownership remains a top priority for renters. It also highlights the importance of innovative industry solutions—like family-backed mortgages and support schemes—to help more people responsibly secure their own homes.”
Patel added, “Despite a slight softening in overall market confidence, the desire to own a home remains strong. The recent economic uncertainties have shifted how consumers view property—not just as a rite of passage but as a key milestone for long-term financial security.”
Julien Lafargue, Chief Market Strategist at Barclays, noted: “With the Autumn Budget imminent and expectations of Bank of England interest rate cuts in December, the UK housing market is poised to gain momentum after a period of stagnation. However, improving affordability must remain a priority alongside anticipated economic improvements and lower rates.”