Rent and mortgage costs stabilise in June as energy bills continue to fall

• Consumer spending on utilities fell -15.6 per cent in June, with further declines predicted following the energy price cap decrease on 1st July
  
• Cold and dreary weather in early June hampered consumer spending on household categories such as DIY and garden centres
• Phil Spencer, TV property expert, shares guidance on how renters can stand out in a crowded market, and how landlords can attract top-tier applicants
• Almost half of renters say that mould and damp are deal-breakers when assessing a rental property
• Barclays Property Insights combines transaction data from millions of Barclays current accounts with consumer research to provide an in-depth look at UK housing costs

Data sourced from millions of Barclays current accounts* reveals spending on rent and mortgages rose just 1.5 per cent year-on-year in June – much slower than May’s uplift of 6.3 per cent. Meanwhile, Barclays and TV property expert Phil Spencer share tips for landlords who want to make their buy-to-let properties more attractive, and advice for prospective tenants looking to stand out in a crowded market.

Barclays Property Insights data shows that the cost of rent and mortgages stabilised considerably in June, increasing by just 1.5 per cent year-on-year – the slowest rate of growth since March 2023. In further good news for households, spending on utilities dropped -15.6 per cent due to falling energy prices, with further declines predicted following the latest price cap decrease on 1^st July.

Consumer confidence also showed signs of recovery – Brits feel more optimistic about their ability to live within their means (up one percentage point to 73 per cent) and job security (up four percentage points to 49 per cent).

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The Barclays research reveals the top 10 attributes that renters consider non-negotiable or ‘deal-breakers’ when assessing a rental property, as well as the qualities that landlords require in prospective tenants.

Almost half of renters (46 per cent) say that the presence of damp and mould is a ‘deal-breaker’, while a third consider access to a living room (34 per cent) and outdoor space (32 per cent) as necessities. One in three (32 per cent) also feel that the property should have at least double-glazing on its windows, likely because double-glazed windows retain heat more easily, which can save on energy bills, and because they’re better at blocking out unwanted noise.

Landlords and property developers looking to make their homes more attractive should consider whether they’re able to check off more of these items, in order to appeal to a broader range of applicants.

From a landlord’s perspective, the qualities most commonly cited as being mandatory in prospective tenants are cleanliness and proof of income (both 27 per cent). One in three landlords (33 per cent) also say they would accept less rent from existing tenants who look after the property, rather than finding new tenants who’ll pay more. In addition, one in four (23 per cent) landlords would accept an offer below the asking price for an applicant that’s flexible on the move-in date.

In a crowded market – 20 per cent of renters feel there is too much competition for rental properties in their area – those looking for an edge over other applicants should look to highlight these qualities in their applications, where relevant. Similarly, one in three landlords (34 per cent) say that personal communication from prospective tenants would make them more likely to consider accepting their application. However, only a quarter (23 per cent) of renters say they’re willing to try this, which gives applicants another opportunity to stand out from the pack.

Home improvement hampered by unseasonable weather

The cold and dull weather at the start of June caused Brits to delay sprucing up their homes and gardens. Across the full month, spending in the home improvement and DIY category fell -9.4 per cent, and garden centres were down -12.7 per cent. However, there are reasons for retailers to remain positive – a third of consumers (36 per cent) say they anticipate spending more money when the weather improves this summer.

Mark Arnold, Head of Savings and Mortgages at Barclays, said: “Our latest spending figures paint an encouraging picture for UK consumers – rent and mortgage payments are stabilising, energy bills are coming down, and confidence is on the up. However, we’re yet to see this translate into spending on sprucing up homes and gardens, with most household categories still in decline. Now that summer has arrived, retailers will be hoping that the warmer weather can unlock that pent-up demand.

“The research also reveals how prospective tenants can stand out in a crowded market by highlighting sought-after attributes such as willingness to take good care of the property and having strong character references. Meanwhile, landlords looking to upgrade their properties can choose from a range of desirable improvements, many of which don’t require significant remodelling, such as damp-proofing, installing double-glazing, and sourcing faster internet.”

Phil Spencer, TV property expert, said: “Given the uncertainty around the housing market in recent months, understandably both renters and homeowners will want to avoid surprises when it comes to the standards and upkeep of their property. With fierce competition for accommodation, renters should think carefully about how to make their application stand out if they want to secure their non-negotiables, such as a private garden or a parking space. Similarly, landlords face competition when it comes to appealing to top-tier renters, who can offer more than simply matching the asking price – a little investment now to secure stable, long-term tenants could pay off if it means spending less money down the line on repairs and having fewer gaps between occupants.”

For more information on buy-to-let mortgages visit our website, or use the Barclays buy-to-let affordability calculator to check your eligibility and affordability.

-ENDS-

Notes to Editors

*Mortgage and rental payments data sourced from Barclays current accounts – e.g. transactions identified as direct debits and bank transfers to mortgage lenders and private landlords. Please note: the data includes payments to multiple lenders (including Barclays). It relates to the period May 18th 2024 – 21^st June 2024. It is compared to the period May 20^th 2023 – 23^rd June 2023.

Across its issuing and acquiring businesses, Barclays sees nearly half of the nation’s credit and debit card transactions, which provides us with unique insight into UK consumer spending. The spending data in this press release is sourced from Barclays’ issuing business – i.e. Barclays debit card and Barclaycard credit card transactions. It relates to the period May 18th 2024 – 21^st June 2024. It is compared to the period May 20^th 2023 – 23^rd June 2023.

The Barclays Consumer Spend research in this press release was carried out between 21^st and 25^th June 2024 by Opinium Research on behalf of Barclays. There were 2,000 respondents in each round of research, providing a representative sample of UK consumers by age, gender, region, and income group. Within the sample of 2,000 respondents, there were 495 renters and 255 landlords.

For more information, please contact Annie McQuoid at annie.mcquoid@barclays.com

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Barclays Market and Customer Insights helps businesses keep up to date with spending trends, monitors their market position and enhances their understanding of customer behaviour, based on actual customer spending. For further information, please email contact-MCI@barclays.com.