Rent and Mortgage Costs Stabilise in June as Energy Bills Continue to Fall

Spending on rent and mortgages rose just 1.5% year-on-year in June, a significant slowdown from May’s uplift of 6.3%, according to new data from Barclays.

Energy Bills Fall, Consumer Confidence Rises

The cost of rent and mortgages stabilised considerably in June, as spending on utilities dropped by -15.6% due to falling energy prices. This decline in energy bills has also led to a rise in consumer confidence, with 73% of respondents stating they feel more optimistic about their ability to live within their means.

A drop in energy bills has led to stabilisation in rent and mortgage costs.

Deal-Breakers for Renters

The research also revealed the top 10 attributes that renters consider non-negotiable or ‘deal-breakers’ when assessing a rental property. 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.

Damp and mould are major concerns for renters.

Landlords’ Priorities

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.

Landlords value cleanliness and proof of income in tenants.

Expert Insights

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.” Phil Spencer, television property expert, added: “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.”

Experts weigh in on the state of the rental market.