Spending on rent and mortgages rose just 1.5% year-on-year in June – much slower than May’s uplift of 6.3%, new data from Barclays has revealed.
Barclays’ latest Property Insights data found that the cost of rent and mortgages stabilised considerably in June, as spending on utilities dropped by -15.6% due to falling energy prices.
Consumer confidence also showed signs of recovery as 73% of respondents said they feel more optimistic about their ability to live within their means.
In addition, the research revealed 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%, said that the presence of damp and mould is a ‘deal-breaker’, while a third considered access to a living room and outdoor space as necessities.
One in three also felt 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.
From a landlord’s perspective, the qualities most commonly cited as being mandatory in prospective tenants were cleanliness and proof of income, both at 27%.
One in three landlords also said 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 landlords would accept an offer below the asking price for an applicant that’s flexible on the move-in date.
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.”
He continued: “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, television 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.”
