Property pressure

Housing costs are eating up a bigger share of UK consumers’ income than ever before. In turn, financial planning and the attitude towards discretionary spending have changed.

Over the last decade, wage growth has struggled to keep pace with rent and mortgage costs, leaving many households squeezed and rethinking their priorities.

• 38% of consumers say their rent or mortgage now takes up a greater share of income than it did 10 years ago, rising to 55% of millennials (28–43-year-olds)
• 5.6% average year-on-year growth in housing spend since tracking began in March 2023
  
• 12.2% peak growth in June 2023 – the sharpest spike in that time.
   

The ripple effects

Housing affordability affects far more than just property decisions. Whether renting or paying a mortgage, these costs are reshaping everything from savings to day-to-day spending – a clear reflection of the broader squeeze on household finances.

• 45% say they don’t feel financially better off than a decade ago
• 44% say they have less disposable income at the end of each month
• 38% say rent/mortgage costs now account for a greater share of their income.
   

What this means for brands

With housing costs reshaping disposable income, brands must adapt to consumers who are reprioritising value, flexibility and planning.

1. Support financial flexibility – offer subscription models, payment plans or budget-friendly bundles
2. Lean into practicality – create products or services that ease home life or boost long-term value
3. Stay sensitive – use messaging that recognises financial pressure without playing on fear.

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