Renters increasingly reconciled to not owning a home ...

Data sourced from millions of bank accounts reveals spending on rent and mortgages increased 6.3 per cent year-on-year in May.

Barclays data shows that consumer confidence has taken a knock as customers also started to feel the impact of rising bills, such as broadband and council tax.

Getting on the property ladder is seen as a major milestone for many with 10% of non-owners saying they feel under societal pressure to be a homeowner. However, many younger people are struggling to take the first step, as just 22% of 18 to 34-year-olds believe that homeownership is a realistic financial goal.

Three in 10 cite the cost of a deposit as the biggest barrier to buying a home, whilst 18% say they are delaying entering the property market due to high interest rates.

Many are also concerned that purchasing a property would put them into lifelong debt – 19% of young people are worried that repayments would continue into retirement if they were to buy a home.

As a result, some are choosing to forgo homeownership altogether, with one in seven renters saying they prefer the flexibility it provides them. For others, housing is no longer an enticing investment, as 12% say they prefer renting due to low confidence in the strength of the UK housing market.

For those who have been able to buy property, 57% of over 55s describe their first home as affordable compared to their income, whereas younger people are three times less likely to say the same.

On average, the older generation also received less help from the “bank of mum and dad” – 10% of over 55s say they received financial support from parents to buy their first home, compared to 19% of 18 to 34-year-olds.

Mark Arnold, Head of Savings and Mortgages at Barclays, says: “Our latest rent and mortgage spending figures show that, despite the encouraging signs of falling inflation, we’re not out of the woods yet.

“With hopes of an imminent base rate cut fading according to the latest swap rates, we’re likely to see housing costs remain high for a while longer.

“Economic instability has also magnified the challenges faced by first-time buyers over the last few years, leading many to feel that homeownership is an unattainable goal, particularly amongst young people.”