Housing Costs Soar as Crisis Unfolds

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Categories: Constituency, Economics, Infrastructure, UK Government (Westminster)

Stirling MP Urges Action from UK Government

Fresh analysis from Bloomberg has revealed the extent of the mortgage crisis sweeping the UK, as the Bank of England releases its latest Financial Stability Report – setting out its Financial Policy Committee’s view on the stability of the UK financial system.

Headline figures include:

  • By the end of 2026, 4 million households are set to renew their mortgages, and face higher costs
  • Average mortgages holders face paying up to £3,000 more per year, with a typical household paying £220 more per month
  • Between 2023 and 2026, around 1 million households face monthly cost increases of at least £500.
  • Landlords, who face monthly rises up to £275, are likely to increase rents to offset costs, putting further pressure on renters. UK private rents rose 5% in the year to May, the biggest rise since records began in 2016.

The Bank of England’s decision to increase interest rates to combat inflation have left households across Stirling, Scotland and the wider UK struggling with higher mortgage and rent costs. The BOE Monetary Policy Committee has raised interest rates 13 times, from 0.1% in December 2021 to 5% in June 2023.

Stirling MP Alyn Smith said:

‘The Bank of England is operationally independent from the UK Government, and that political principle is important. But it is the UK Government which sets the wider framework in which the Bank operates. The increased costs facing millions of households is truly astounding, and this comes on top of higher food and energy bills in this cost of living crisis. 

‘The budgets of mortgage holders and renters alike are facing even more strain if these increases go ahead – where is the Prime Minister in all of this? Where is the political leadership to help households, provide support, and restore financial stability? The powers to assist in this Tory mortgage crisis lie firmly with Westminster, yet it’s my constituents in Stirling, and communities across Scotland who are left picking up the pieces from failed Conservative dogma. The only way to truly escape discredited Tory control is with independence in Europe.’

Notes:

BOE Report

Bloomberg Analysis