Rent and mortgage costs soared in May - this is how much they're up by
The data was sourced using Barclays current account transactions which were identified as direct debits and bank transfers going to mortgage lenders and private landlords.
Spending on rent and mortgages surged in May, with a 6.3 percent year-on-year increase reported by a leading bank's analysis of its current accounts.
This uptick outpaced the 3.6 percent annual growth observed by Barclays in April.
The figures were derived from direct debits and bank transfers to mortgage lenders and private landlords, as identified through Barclays current account transactions.
Payments to various lenders, including Barclays itself, were encompassed in the data.
Despite the rise in housing costs compared to 2023, the month-to-month change was slight, suggesting that consumers might not feel significantly more financially strained in the immediate term, especially considering the Ofgem energy price cap reduction in April, according to Barclays.
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Barclays also highlighted indications that easing inflation is providing some relief to consumers.
A survey conducted by Opinium Research for Barclays in May found that 62 percent of participants felt the inflation slowdown helped them manage their finances better, and over half (56 percent) of the 2,000 UK respondents expressed increased confidence in their household financial situation.
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Commenting on the findings, Mark Arnold, head of savings and mortgages at Barclays, remarked: "Our latest rent and mortgage spending figures show that, despite the encouraging signs of falling inflation, we're not out of the woods yet."
He added: "With hopes of an imminent base rate cut fading, according to the latest swap rates (which lenders use to price their mortgages), we're likely to see housing costs remain high for a while longer."
Frances McDonald, the Director of Research at leading estate agency, Savills, affirmed: "Aspirations of home ownership remain strong, particularly as the cost of renting exceeds average mortgage payments in many locations."