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Middle East Conflict Prompts Brits To Rethink Housing Plans



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 7, 2023
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This November is set to be M&S’ biggest ever store opening month. Across the month M&S will open nine new stores, investing £80m in sustainable bricks and mortar retail and supporting over 2,200 local jobs across the UK.


Kicking off with a major new 65,000 square foot store in Birmingham’s Bullring on Tuesday 7th November, M&S will open at least one store every seven days throughout the month. This also includes two further new store openings, alongside three new M&S Foodhalls and a further three store renewals.


The openings are part of M&S’ aim to become the UK’s leading omnichannel retailer, with its store rotation programme at the centre of this ambition. The store rotation programme ensures M&S has the right stores, in the right place, with the right space. The retailer is aiming to rotate from a base of 247 stores to 180 higher quality, higher productivity full line stores that sell its Clothing, Home and Food ranges, while also opening over 100 bigger, better food sites, by FY27/28.


At the start of the year M&S set out a c.£500m investment in its store rotation programme and outlined its ambition to go faster in the programme and target delivery in three years instead of five by FY25/26. In the last year M&S has seen strong performances from its recently relocated stores with strong payback on invested capital giving the retailer the confidence to go faster.


As part of this headline investment M&S has already relocated to new stores in Leeds White Rose and Liverpool ONE in the summer with both performing ahead of expectations. The relocations also deliver significant environmental benefits. The new Liverpool ONE store for example is a more efficient and modern building which uses LED lighting and a natural refrigeration system which is 55% more efficient than the old store and delivers a 69% reduction in carbon emissions.


M&S has also opened a number of new Foodhalls this year as part of its aim to deliver 100 new bigger, better food stores, including Purley Way, Stockport and Clacton. Today’s announcement outlining M&S’ biggest ever store opening month is the next stage of the retailer’s investment and acceleration of its plans.


The three new full line stores in Birmingham Bullring, Lakeside Thurrock and Manchester Trafford Centre are all store relocations – part of M&S’ investment to regenerate vacant sites. The three store renewals also mean M&S is nearing over 100 stores in the renewal format. Each store aims to appeal to local families, with customers able to browse in wider, brighter aisles and a clear line of sight across the store. With fresh market-style food halls stocking the full M&S Food range, spacious Clothing, Home and Beauty departments, as well as free car parking to make shopping more convenient for customers. Lakeside and Trafford Centre will also have brand-new M&S cafes.


Sacha Berendji, Operations Director: “Stores are key to our business, and we see them as part of our competitive advantage. Increasing numbers of customers are heading back in to stores to experience the best of M&S all under one roof, supported by outstanding service from our colleagues, and we expect this to continue as we head into Christmas."


"To deliver our biggest ever store opening month which supports thousands of jobs is an outstanding effort from the team and shows just how serious we are about accelerating our rotation plans so we are in the right locations for our customers.”

Alongside store openings, M&S recently announced it is hiring over 10,000 new Customer Assistants to support in its stores over the festive period. The vacancies represent a 40 per cent increase on last year and reflects the additional investment M&S is making in colleague hours to support customers on the shop floor so that the retailer is well set up to support customers as it heads into the festive season.

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