top of page

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.




Most Read

Bestway Wholesale Appoints A Food Service Director

Bestway Wholesale Appoints A Food Service Director

Bestway Wholesale has appointed Charles Abraham as Food Service Director, strengthening its senior leadership team as the business accelerates its growth across catering, foodservice and the on-trade markets.

Acquisition Success In Two Cities For Vail Williams

Acquisition Success In Two Cities For Vail Williams

Property consultancy Vail Williams has successfully acquired premises in Birmingham and Sheffield for leading intellectual property law firm Withers & Rogers.

Parents Feel Most Lonely, Five Months After Having A Baby

Parents Feel Most Lonely, Five Months After Having A Baby

With many new parents in Scotland experiencing a drop in contact with others just a few months after having a baby.

Categories

  • Jul 24, 2025
  • 3 min read

Updated: Jul 30, 2025


For generations, the UK high street has been the beating heart of towns and cities across the country. It's where people shopped, dined, and socialised, creating vibrant, bustling communities.


However, over the past few decades, the high street has been undergoing a significant decline. Empty storefronts, struggling businesses, and changing consumer habits have all contributed to this decline. Here we take a look at the various factors behind the decline of the UK high street and the efforts to rejuvenate these essential centres of commerce and community life.


The Rise Of E-Commerce

One of the most significant factors in the decline of the UK high street is the exponential growth of e-commerce. Online shopping has become more convenient and accessible, allowing consumers to shop from the comfort of their homes. The convenience of doorstep delivery and a vast selection of products have lured shoppers away from traditional brick-and-mortar stores and put some businesses in jeopardy.


Changing Consumer Habits

Consumer preferences have shifted towards experiences rather than just purchases.


People are now more likely to spend their money on dining out, entertainment, and leisure activities.


This shift has reduced foot traffic in traditional retail stores, causing a decline in sales for many high street businesses and made many think about how they engage with customers and remain relevant and sustainable as an operation.


High Costs & Business Rates

Running a physical store on the high street comes with high overhead costs, including rent, utilities, and business rates. These expenses can be burdensome for small and independent businesses, making it challenging for them to compete with larger, online retailers and the rising costs in recent years has been too much for many with boarded shop fronts now a common site on high streets up and down the country.


The Impact Of The Pandemic

The COVID-19 pandemic dealt a severe blow to high street businesses. Lockdowns, social distancing measures, and consumer concerns about safety led to temporary closures and reduced foot traffic. Many businesses struggled to survive, and some were forced to close permanently. Even today, some of those that remain open are struggling to return to pre-pandemic levels of business.


Out-of-Town Shopping Centres And Retail Parks

The development of out-of-town shopping centres and retail parks with ample parking and larger stores has drawn customers away from the traditional high street. These destinations often offer a one-stop shopping experience that can be more appealing to consumers delivering a full experience with restaurants, cinemas and shops all under one roof or close by.


Despite these challenges, there are ongoing efforts to revive the UK high street and restore its vitality of town centres, with numerous leading politicians and celebrities adding their voice to the agenda. Some of the initiatives being implemented include:


Diversification

To adapt to changing consumer preferences, high street businesses are diversifying their offerings. Many are incorporating cafes, events, and services like click-and-collect to create a more engaging and experiential shopping environment.


Business Rate Reforms

There have been calls for reforms in the business rates system to ease the financial burden on high street businesses. These reforms aim to create a more level playing field between online and offline retailers.


Community-Led Initiatives

Local communities are taking matters into their own hands by supporting local businesses and organizing events to promote the high street. The "Shop Local" movement encourages consumers to spend their money within their communities with events taking place in centres to draw people back to the hub and spend their money on the high street.


Digital Integration

High street businesses are embracing digital technologies to enhance their online presence and provide omnichannel shopping experiences. Many retailers are now offering e-commerce options alongside their physical stores which is helping to address some of the financial challenges that they are faced with.


The decline of the UK high street is a complex issue influenced by changing consumer habits, economic factors, and the rise of e-commerce. However, the high street remains a crucial part of our communities, and efforts to revive it are ongoing.


By adapting to new trends, supporting local businesses, and implementing reforms, there is hope that the high street can evolve and continue to play a vital role in our society. It may never be the same as it once was, but with innovation and community support, it can thrive in the modern era.

Most Read

Bestway Wholesale Appoints A Food Service Director

Bestway Wholesale Appoints A Food Service Director

Bestway Wholesale has appointed Charles Abraham as Food Service Director, strengthening its senior leadership team as the business accelerates its growth across catering, foodservice and the on-trade markets.

Acquisition Success In Two Cities For Vail Williams

Acquisition Success In Two Cities For Vail Williams

Property consultancy Vail Williams has successfully acquired premises in Birmingham and Sheffield for leading intellectual property law firm Withers & Rogers.

Parents Feel Most Lonely, Five Months After Having A Baby

Parents Feel Most Lonely, Five Months After Having A Baby

With many new parents in Scotland experiencing a drop in contact with others just a few months after having a baby.

Categories

Barclays Report Finds Travellers Seek More Control

Barclays Report Finds Travellers Seek More Control

Barclays US Consumer Bank released its fourth annual Travel Rewards and Loyalty Report, showing that today’s travellers are approaching vacations with a sharper focus on control, value, and confidence.

Private Property Landlords Facing Compliance Headache

Private Property Landlords Facing Compliance Headache

Private property landlords are facing a significant compliance change in the private rented sector (PRS) in 2026, with the introduction of Making Tax Digital in April and the Renters Rights’ Act this month.

Perth & Kinross-Shire Butchers Expands With New ‘Pie Factory’

Perth & Kinross-Shire Butchers Expands With New ‘Pie Factory’

A rural Perthshire food business is expanding its production capacity and creating new jobs after receiving strategic growth support from Business Gateway.

Recent Posts

bottom of page