"Rent and mortgage payments are stabilising, energy bills are coming down, and confidence is on the up."
- Mark Arnold, head of savings and mortgages at Barclays
Spending on rent and mortgages rose just 1.5% year-on-year in June – much slower than May’s uplift of 6.3%, according to data sourced from millions of Barclays current accounts.
The data shows that the cost of rent and mortgages stabilised considerably in June, seeing the slowest rate of growth since March 2023.
In further good news for households, spending on utilities dropped by 15.6% due to falling energy prices, with further declines predicted following the latest price cap decrease on 1st 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%) and job security (up four percentage points to 49%).
The research also found that 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%. However, there are reasons for retailers to remain positive – a third of consumers (36%) 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.”
