Housing costs are stabilising after years of surging payments, according to Barclays data, adding to evidence that the economy is turning a corner.

The amount people spent on mortgage repayments and rents rose by 1.8pc in March compared with a year ago, according to analysis of millions of current accounts.

This is far lower than the rise of 12.2pc recorded in June 2023, when growth was at its highest. It is the lowest annual increase since March 2023.

Soaring inflation and higher interest rates have pushed up average monthly mortgage costs by hundreds of pounds, while rents have surged as landlords pass on higher borrowing costs.

Sales of buy-to-let properties have also reduced supply after some landlords stopped renting their properties after years of higher taxes and increased regulation in the sector.  

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