Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Barclays Report Highlights Delays and Affordability Pressures in UK Property Market

Barclays' latest Property Insights report reveals that buyers and sellers across the UK are facing significant delays in property transactions, alongside ongoing affordability challenges. The report shows that conveyancing issues, exchange complications, and high property prices are impacting both homeowners and renters.

According to the report, nine in ten buyers and sellers experienced delays in completing property purchases due to conveyancing and exchange issues, with transaction timelines rising by 21.7% year-on-year. Of those surveyed, 88% reported delays with exchanges, and 29% said their property purchase fell through. The main causes cited for these delays were conveyancing issues (21%), estate agent delays (19%), and difficulty finding suitable properties (18%).

Affordability remains a key concern, particularly for renters. The report found that 37% of renters identified the cost of a deposit and 36% pointed to high property prices as barriers to homeownership. Average deposit values across all age groups fell by 16.4% year-on-year to £57,209. London saw one of the sharpest drops in deposit size, down 27.2% to £136,057, while Northern Ireland reported a 14.9% increase to £41,008. The North also saw a slight increase in deposit values, up by 0.8% to £36,794.

Despite these challenges, confidence in the UK housing market rose to 26% in May from 23% in April. However, deposit values remain the top barrier to homeownership for renters. Economic uncertainty is also influencing decisions, with one in three consumers more likely to delay buying or selling, and a third increasing their savings or cutting back on spending.

The report highlights that among 18-29-year-olds, 24% consider price the most important factor when buying a home, ahead of location (19%) and neighbourhood quality or safety (17%). A quarter of Gen Z renters said they cannot afford to buy in their desired area, and 21% of those prioritising price would consider moving over 25 miles away. Baby boomers are more likely to compromise on property condition, with 22% willing to do so compared to 11% of Gen Z.

For letting agents and inventory clerks, these findings underline the ongoing pressures in the UK property market, with transaction delays and affordability constraints likely to impact rental demand, property turnover, and client expectations.