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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Apr 9
2 min read

A new survey of 500 senior decision-makers within UK businesses, commissioned by Studio Graphene, has found:

Almost half (48%) know or suspect that employees in their organisation are using AI tools that have not been officially approved.
64% are concerned unregulated AI use could lead to data security or compliance risks.
34% of businesses do not have formal policies or guidelines governing AI usage, and 37% have not communicated to staff their expectations for how AI should be used.
Two thirds of business leaders in the UK are worried about potential data security and compliance risks stemming from employees’ unregulated use of artificial intelligence (AI) tools, according to new research from Studio Graphene.

The digital product studio commissioned Censuswide to survey 500 managers, directors and C-suite executives within UK businesses. It found that almost half (48%) know or suspect that employees in their organisation are using AI tools that have not been officially approved – this rises to 54% for larger companies (over 250 employees).

Shadow AI refers to the use of unauthorised AI tools and services, and 48% of the leaders surveyed admitted that managers in their organisation have limited visibility of how staff use AI in their day-to-day work. Just under two thirds (64%) are concerned, however, that unregulated AI use could lead to data security or compliance risks.

Despite these concerns, Studio Graphene’s research also revealed just how many UK businesses have not formally created and communicated AI policies or guidelines. More than a third (34%) of organisations said they do not have formal policies or guidelines governing AI usage, while even more (37%) have failed to communicate to staff their expectations for how AI should be used.

Elsewhere, the study showed that while three fifths (59%) of UK business leaders are worried that an over-reliance on AI could lead to employees making mistakes, 61% admitted that frontline staff are more comfortable with using AI in their day-to-day work than the organisation's senior leadership team.

Ritam Gandhi, director and founder of Studio Graphene, said:

“Shadow AI isn’t the result of malice or even carelessness. It’s often the result of a disconnect between senior leadership and their teams – if the organisation is sanctioning or investing in AI tools that are not working well or delivering value, employees will turn to unsanctioned alternatives that will enable them to do their jobs better."

“It all comes down to precise strategy and effective integration. Businesses need a clear picture of where AI can make a meaningful impact and then, crucially, they have to embed it effectively into workflows so the AI can inform decisions or improve processes."

"Without that, AI projects are doomed to fail, meaning employees will continue to source their own AI tools – and that undoubtedly creates risks where data privacy, security and regulatory compliance are concerned.”

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Middle East Conflict Prompts Brits To Rethink Housing Plans

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