This was the slowest rate of annual growth for the cost of rent and mortgages since March last year, according to analysis of customer current accounts at Barclays.
Spending on utilities also fell during the month, with a 15.6% decline in June. Barclays put this down to falling energy prices and said the decline was set to continue following the most recent price cap decrease on 1 July.
There was also a boost in consumer confidence, with 73% of Brits feeling optimistic about being able to live within their means, which was 1% higher than previously. Some 49% felt confident about their job security, which was a 4% improvement.
Renter and landlord wants
Barclays also asked renters the top 10 factors they considered “non-negotiable” when looking at a rental property, and polled landlords on what they looked for from prospective tenants.
Some 46% of renters said the presence of damp and mould was a “deal breaker”, while a third – 34% – said they needed access to a living room. Some 32% prioritised having access to outdoor space.
Barclays found that 32% of renters felt properties should have double glazing to retain heat, save on energy bills and block out noise.
A fifth of renters said there was too much competition for properties in their area.
For landlords, 27% of respondents thought tenant cleanliness was an important consideration and an equal proportion said the same about proof of income.
A third of landlords said they would accept less rent from existing tenants who look after the property instead of finding tenants who would pay more in rent. Some 23% of landlords said they would accept an offer below asking price if the tenant was flexible with the move-in date.
A third – 34% – of landlords said personally communicating with prospecting tenants would make them more likely to consider accepting their application. However, just 23% of renters said they were willing to do this.
Less attention to home improvement
Barclays said the damp weather hampered Brits’ efforts to renovate their homes, as indicated by a 9.4% decline in home improvement and DIY spending. Spending on garden centres also fell by 12.7%.
However, the survey found that 36% of consumers were prepared to spend more money as the weather got better.
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.”
This article first appeared on our sister site, Mortgage Solutions, here.
