Economic uncertainty is also prompting some households to pause. Thirty percent of consumers say they are now more likely to delay a purchase or sale due to economic volatility, while 32% are increasing savings or cutting spending as a precaution.
At the same time, existing homeowners are taking a more proactive stance on remortgaging. More than two-fifths (42%) of mortgage holders surveyed say they are more likely to lock in a rate early. Remortgage activity accounted for 40.6% of Barclays Mortgage completions in May, up from 30.7% a year earlier.
“Adaptability has become the hallmark of the modern buyer,” said Jatin Patel (pictured right), head of mortgages, savings and insurance at Barclays. “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.”
For Julien Lafargue (pictured right), chief market strategist at Barclays, 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.