Cost, complexity, and economic uncertainty are deterring many from property investment
Growing reluctance among homeowners to take on the responsibilities of being a landlord is increasingly shaping behaviour across the UK housing market, according to new research from Barclays.
The data shows that 69% of homeowners say they would not want to become a landlord due to cost and complexity, while 48% consider owning an additional property too financially risky in the current economic climate.
Some 36% of respondents believe that owning additional properties adds pressure to the housing market, while 34% say they would prefer to invest in the stock market rather than property.
"Attitudes are shifting when it comes to buying property as an investment, with many concerned for the impact on the wider landscape as well as returns," noted Jatin Patel (pictured right), head of mortgages, savings and insurance at Barclays.
Meanwhile, nearly a quarter (22%) of homeowners say they would like to own a second home but consider it unaffordable.
For those who have considered or purchased a second home, the average deposit stands at £50,340, alongside stamp duty of £29,849 and third-party costs of £5,698 — a total upfront cost of £85,887 on average.
Among those citing barriers, 28% point to high maintenance and running costs, 24% to the time required to manage a property, and 21% to stamp duty.
Renters' Rights Act drives rise in tenant confidence
Patel noted that both mortgage brokers and customers have been adjusting since the Renters' Rights Act came into effect.
The Renters' Rights Act, first proposed in 2023 and passed into law in October 2025, represents the most significant reform of England's private rented sector in decades. It abolishes Section 21 no-fault evictions, moves all private tenancies to open-ended periodic contracts, limits rent increases to once per year through a formal statutory process, and extends the Decent Homes Standard to the entire private rented sector for the first time.
Awareness of the legislation has risen sharply. Among tenants, it increased from 19% in October 2025, after the bill passed, to 60% when it came into effect. The research shows that 62% of renters now say the Act improves their housing protections and conditions, almost double the 33% recorded in October. Some 61% believe the legislation will make it easier to challenge unfair treatment from landlords, up from 28% in October.
"Awareness and positivity around the Renters' Rights Act have dramatically increased amongst tenants," said Patel, though he acknowledged that concerns about shrinking rental supply persist among a significant proportion of renters.
Some 45% of renters worry about the Act's long-term impact on rental supply and costs, and the same proportion fear the reforms could prompt landlords to exit the market — up from 24%.
Patel noted that if the Act curbs steep rent increases, tenants may gain more scope to save towards a deposit, potentially broadening access to home ownership. The longer-term impact on rental supply, however, remains unclear as homeowners weigh property investment against other asset classes.
Older homeowners not relying on property to fund retirement
Barclays' research also challenges the assumption that older homeowners plan to draw on property wealth to fund retirement. Some 52% of Baby Boomers — those aged 62 to 80 — are already, or expect to be, mortgage-free by the time they retire. Of that group, 76% say they do not plan to access funds from their property to help fund retirement. A further 28% say their home is intended as a legacy for their family rather than a financial asset. Just 8% say they have moved, or plan to move, to a smaller property to release funds, and only 5% intend to use equity release.
Barclays mortgage data shows that buyers aged over 60 are purchasing properties that are 25.1% more expensive than those bought by people aged 28 to 43, and 79.3% more expensive than those bought by under-27s.
Households cutting costs amid economic uncertainty
Ongoing economic uncertainty has led many households to reduce monthly outgoings. Some 61% of respondents say they are cutting back on energy use, 32% are reviewing household budgets, and 27% of mortgage holders are making overpayments on their loan to protect against interest rate volatility.
"As the Renters' Rights Act beds in, the UK housing market is adjusting on multiple fronts," Patel said. "Tenants report greater confidence and protections, while households more broadly are responding to uncertainty by cutting costs, overpaying mortgages and building financial resilience."
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