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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May 15, 2025
2 min read

A south coast-headquartered law firm has expanded its presence in London’s Square Mile with two additional departments.

The move by Ellis Jones Solicitors to grow the range of services from its city office at 107-111 Fleet Street is designed to further embed its experts ‘at the very heart of the Capital’s legal and business hub’.

Family and Employment now take their place alongside Banking & Finance Litigation, Dispute Resolution and Business Services as team specialisms available to London clients. The service expansion follows the relocation of Senior Associate Solicitor Georgina Emerson from Bournemouth to London to head up London’s Family team.

At the same time, Daniel Flynn, Solicitor in Dispute Resolution, has been promoted to Partner while fellow London-based colleague Tayla Baird has qualified as a Solicitor specialising in Employment.

Altogether, Ellis Jones now has nine individuals working full-time from Fleet Street with various partners from all departments - Paul Kanolik, Lauren Day, Deborah Leask, Kate Brooks and Neil Cook - also now operating between London and Bournemouth, enabling the firm to offer a full legal service to London-based clients.

Many of the team based in London have been recognised with high ratings in one or both of the independent professional directories Legal 500 or the Chambers UK Legal Guide.

In Banking & Finance Litigation, the London colleagues are Partner and Department Head William Fox Bregman, Senior Associate Solicitor Tim McMahon, Associate Solicitor Daniel Lewis, Trainee Solicitor Bradley Moon and Junior Paralegal Lovetta Pring. The London representative of Ellis Jones’ Business Services department is Associate Solicitor Clementine Saulnier.

Commenting on the expansion, Family specialist Georgina said:

“Since joining the firm in 2016, I have watched the London office go from strength to strength. For many years we have had a presence in the City of London but this latest expansion to five full-time departments is a fantastic opportunity for us to offer more of a full-service proposition. We already have an esteemed reputation in London, but this is an exciting chance to strengthen our offering at the very heart of the Capital’s legal and business hub. We are located just round the corner from the Royal Courts of Justice and close to many other landmark legal and financial institutions.”

The expansion was the focus of a recent ‘Meet the Firm’ networking event for business clients hosted by the team at the Fleet Street office.

Georgina said: “We had a fantastic turnout on the evening and are working on several business referrals generated from it already. We aim to hold similar events for our London neighbours, professional contacts and clients every quarter from now on.”

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Middle East Conflict Prompts Brits To Rethink Housing Plans

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