Global and economic uncertainty are directly influencing how homeowners are managing household finances, a major bank has found.
Barclays’ Property Insights report revealed that 17% of adults said the Middle East conflict has affected their housing plans.
Some 27% of homeowners are overpaying on their mortgage to safeguard against potential rate rises, while a fifth of those remortgaging want to lock in a new rate as soon as possible to mitigate any further volatility on the horizon.
The bank’s mortgage data from March highlighted a nine-percentage-point year-on-year rise in the number of customers borrowing to remortgage – however, Barclays noted that most of the remortgages completed were initiated prior to the conflict in Iran. It said the increase in people borrowing for a remortgage – in comparison to a home move or first-time purchase – was likelier to be a function of the large share of borrowers rolling off five-year fixed rates taken out during 2021’s ultra-low interest rate environment.
Economic uncertainty is main barrier
Barclays’ research identified economic uncertainty as the top barrier preventing or delaying homeowners from moving, with almost a third of respondents saying this could change their plans.
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Some 28% cited moving fees, 27% said stamp duty, 24% pointed to the price gap between the current home and available properties and 24% said mortgage rates were hindering their plans. Additionally, 45% of working adults said their wages were not in alignment with rising costs.
As a result, Barclays found that existing homeowners are increasingly drawn to cheaper homes and larger mortgages. It said the share of purchases of homes below £500,000 increased to 73.2% year-on-year – a rise from 70.5% in March 2025 – and, over the same period, the number of first-time buyers with a deposit of less than £20,000 rose to 56.7% from 43.2%.
Second-steppers face biggest financial challenge
Just under half (41%) of UK homeowners said they are living in the first property they’ve ever owned. These second-steppers estimated they need to save an average of £75,648 to move up the housing ladder – on top of any proceeds from the sale of their current home.
Barclays said this is broken down as £28,112 for stamp duty, £41,751 for a deposit, and £5,785 for third-party costs, such as legal fees.
Conversely, buyers of a third or subsequent primary residence estimated that they need an average saving of £52,651 – £19,835 for a deposit, £26,860 for stamp duty, and £5,996 in third‑party costs. This is almost £23,000 less than second-steppers, which the bank said indicates the equity that has typically been built up in the homes of the former group.
It also found that almost half (43%) of respondents who are further up the property ladder said they would not need to save anything for a deposit.
‘Pragmatic’ response
Jatin Patel, Barclays’ head of mortgages, savings and insurance, said: “Periods of geopolitical and economic uncertainty inevitably place greater focus on household finances, and we’re seeing homeowners and potential buyers respond in pragmatic ways. Borrowers are demonstrating resilience by overpaying where they can, reassessing their mortgage options, and thinking carefully about timing to maintain flexibility and control.
“For those moving from their first to their second primary residence, the challenge is more structural. Buyers at this stage often face the widest gap between properties, while still needing to fund deposits, stamp duty and moving costs largely from savings rather than equity alone. That makes second steppers particularly sensitive to economic pressures, even as they take considered steps to keep their housing plans on track.”