In a notable shift, data from millions of Barclays current accounts indicates that spending on rent and mortgages increased by a modest 1.5% year-on-year in June, a significant deceleration from May’s 6.3% rise. This 1.5% growth is the slowest rate observed since March 2023.
In a further boost for households, utility spending dropped sharply by 15.6%, thanks to decreasing energy prices. Further reductions are anticipated following the latest price cap cut on July 1.
Consumer confidence appears to be rebounding, with more Britons feeling positive about their financial management and job security. Confidence in managing living expenses rose by one percentage point to 73%, and job security optimism increased by four percentage points to 49%.
The Barclays research also sheds light on the top attributes renters consider non-negotiable when evaluating a rental property. Leading the list, 46% of renters cite the absence of damp and mould as a critical factor. Other key considerations include having a living room (34%) and access to outdoor space (32%). Approximately one-third of renters also prioritize double-glazed windows for their energy efficiency and noise reduction benefits.
Renters’ Top 10 Deal-Breakers
| Rank | Attribute | Percentage |
|---|---|---|
| 1 | No damp/mould present | 46% |
| 2 | Living room/lounge | 34% |
| 3 | Private garden and/or outdoor space | 32% |
| 4 | Double glazing on windows | 32% |
| 5 | Fast internet/broadband capabilities | 24% |
| 6 | Pets allowed | 23% |
| 7 | Off-street parking | 21% |
| 8 | Large bedrooms | 17% |
| 9 | Likeability of landlord/property agents | 17% |
| 10 | Privacy from neighbours | 16% |
In a competitive rental market, where 20% of renters feel overwhelmed by the competition, highlighting these attributes can give applicants an edge. Moreover, one in three landlords appreciate personal communication from prospective tenants, yet only 23% of renters are willing to try this approach, presenting a missed opportunity for many.
Mark Arnold, head of savings and mortgages at Barclays, commented: “Our latest spending figures present an encouraging scenario for UK consumers – rent and mortgage payments are stabilising, energy bills are decreasing, and consumer confidence is rising. However, this has not yet translated into spending on home improvements, with many household categories still in decline. As summer sets in, retailers hope that the warmer weather will stimulate pent-up demand.”
Arnold further noted that prospective tenants could stand out in a crowded market by showcasing desirable attributes, such as a willingness to maintain the property and providing strong character references.