Middle East Conflict Prompts Brits To Rethink Housing Plans

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Barclays Property Insights reveals that global and economic uncertainty is impacting how UK homeowners are managing their household finances. Almost one in five UK adults (17 per cent) say their housing plans have been affected by the conflict in the Middle East, with many taking action to protect against interest rate and cost‑of‑living pressures.

To safeguard against future rate rises, over a quarter of homeowners (27 per cent) say they are overpaying on their mortgage, and a fifth (20 per cent) of those remortgaging are looking to lock in a new rate as soon as possible in case of future volatility.

Early signs of this behaviour appear in Barclays’ mortgage data from March, which shows that the share of customers borrowing for a remortgage – compared to other reasons for borrowing, such as a first-time purchase or a home move – rose 9 percentage points year-on-year1.

However, it’s important to note that most of the remortgages completed were initiated prior to the escalation of the conflict in Iran, so this increase is more likely driven by the high numbers of people in the UK rolling off five-year fixed rates taken out during the low-interest rate environment in 2021.

Movers adapt to macroeconomic conditions

Existing homeowners cited a number of factors which could delay or prevent their next move. The top barrier was economic uncertainty, with three in 10 (29 per cent) saying this could change their plans. Other factors include stamp duty (27 per cent), moving fees (28 per cent), mortgage rates (24 per cent), and the price gap between their current home and available properties (24 per cent). Nearly half of adults in work (45 per cent) say their wages are not keeping pace with rising costs, so many may find it harder to take the next step up the ladder.

Facing these barriers, Barclays Mortgage data shows that existing homeowners increasingly gravitate towards cheaper properties and larger mortgages. The proportion of home purchases below £500,000 rose to 73.2 per cent year‑on‑year (up from 70.5 per cent in March 2025), while the share of next-time buyers putting down a deposit of less than £20,000 increased to 56.7 per cent from 43.2 per cent over the same period.

Second‑steppers face the largest financial leap on the housing ladder

Two-in five (41 per cent) UK homeowners say they are living in the first property they’ve ever owned, but moving up to the next rung of the property ladder can be challenging.

First-time owners looking to move to their next home – also known as ‘second-steppers’ – estimate needing to save an average of £75,648 to fund the purchase, on top of any proceeds from the sale of their current home. That figure breaks down into £41,751 for a deposit, £28,112 in stamp duty, and £5,785 in third‑party costs such as legal fees.

In contrast, third‑steppers and beyond – i.e. homeowners buying their third or subsequent primary residence – estimate needing to save just £52,651 on average. This includes £19,835 for a deposit, £26,860 for stamp duty, and £5,996 in third‑party costs.

That is £22,998 less than second‑steppers, reflecting the greater equity this group has typically built up in their current home. Over two in five (43 per cent) of those further along the property ladder say they would not need to save anything for a deposit at all.

Jatin Patel, Head of Mortgages, Savings and Insurance at Barclays, 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.”

Barclays has solutions for homeowners at every stage of the property ladder, from Mortgage Boost for first-time buyers, or additional borrowing if customers need to fund a large purchase, renovation, or to consolidate debt. Find out more here.

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Nov 12, 2024
2 min read

International humanitarian charity Feed The Hungry UK is appealing for local businesses to help fill a shipping container with enough food for children in Zimbabwe.

The new Boxes of Hope Campaign comes following a stark warning by the United Nations that over half of the nation’s rural population will be ‘food insecure’ by early next year. It comes in the wake of a food crisis that’s been exacerbated by a combination of recent weather extremes including extended droughts and soaring temperatures.

This Christmas, the humanitarian aid charity Feed The Hungry UK is asking businesses and organisations to respond to this crisis by filling a shipping container with enough food to provide 285,000 meals.

The challenge is for around 30 business partners to each raise £2,500 - enough money for 10,000 rice meals.

The Projects Director for Feed The Hungry, Gavin Kibble MBE, said:

“We’ve worked in Zimbabwe for over 20 years and already have established feeding programmes in Harare. Because of the challenging conditions that have led to crop failure, we’ve started new programmes in more rural areas of Zimbabwe. Now, we’re regularly feeding 19,500 children every school day."

“These rice meals are cheap - just 25p per meal - but the mix of ingredients in each meal gives the carbohydrates, proteins, vitamins and minerals that a child needs to thrive. We’ve seen whole schools where malnutrition has been eradicated because the students are regularly eating this food. Businesses can give 10,000 of these meals for a donation of just £2,500.”

The Christian humanitarian organisation is regularly helping more than 485,000 children with meals, working with partners in 25 countries around the world to fight hunger due to poverty, war, famine and natural disasters. This is delivered home and abroad mainly through feeding programs and encouraging sustainability and Community Farming projects as well as holding packing events at the Halo Centre warehouse in Coventry.

As part of the Boxes of Hope Campaign, for any company that can raise the money for the 10,000 meals, Feed The Hungry will come and run a food packing activity in which staff can pack the rice meals themselves. Packing 10,000 meals takes a team of 40 people around 2.5 hours.

Head of Fundraising for Feed The Hungry, Rich Smith, said:

“We’re looking for companies of all sizes to take part. The donation for 10,000 meals doesn’t need to come from the business itself, but instead, we’d encourage staff to take part in fundraising as a team to raise the money. We’ve got online donation forms that can be set up for each company taking part so that you can see how much you’ve raised in real-time. And we’ve got loads of ideas to help you raise the money in enjoyable ways as a team.”

“Feed The Hungry run food packing events up and down the UK. We can come to your business and bring all of the equipment, ingredients and expertise so that your staff can help pack the meals that they’ve raised the money for. Meal packing is an amazing way for your staff to participate tangibly in helping to tackle world hunger, it’s a lot of fun and a great way to build your team.”

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Middle East Conflict Prompts Brits To Rethink Housing Plans

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