Consumer confidence improves
There was a notable slowdown in the growth of spending on rent and mortgages, with a modest 1.5% year-on-year increase in June, a significant drop from May’s 6.3% rise, recent data from mortgage lender Barclays has revealed.
Household spending on utilities also dropped by 15.6%, attributed to falling energy prices, with further reductions expected after the latest price cap decrease on July 1.
Consumer confidence showed improvement, with more Brits feeling optimistic about their ability to live within their means, up one percentage point to 73%, and job security, up four percentage points to 49%.
The Barclays Property Insights also identified key attributes renters consider essential when evaluating a rental property and what landlords seek in tenants.
Damp and mould are deal-breakers for 46% of renters, while 34% and 32% respectively see access to a living room and outdoor space as necessities. Double-glazed windows are also important for 32%, valued for their energy efficiency and noise reduction.
Meanwhile, cleanliness and proof of income are mandatory for 27% of landlords. A third (33%) would accept lower rent from tenants who maintain the property well, and 23% would accept an offer below the asking price if the tenant is flexible on the move-in date.
With 20% of renters feeling there is too much competition for rental properties in their area, highlighting these qualities can make applicants stand out. Personal communication from prospective tenants can also influence landlords, with 34% of landlords more likely to consider applications with direct contact, though only 23% of renters are willing to try this.
Data also showed that June’s cold and dull weather led to a decline in spending on home improvement and gardening, down 9.4% and 12.7% respectively. However, 36% of consumers anticipate spending more once the weather improves this summer.
“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,” said Mark Arnold (pictured), head of savings and mortgages at Barclays. “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.”
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