The UK government is being urged to do more to help mortgage holders and renters with soaring costs as household concerns escalate.
A new Which? Study shows that head of yet another interest rate rise later this month, cost-of-living concern for mortgage owners and renters has hit a ‘record high’.
According to Which?’s Consumer Insight Tracker, 79% of mortgage owners and 81% of renters are worried about housing costs, the highest level since the survey began in 2013. Meanwhile, there has been a steady increase in housing cost concern among renters over the past two years, with 62% saying they were worried in August 2021.
The survey also found 2.2 million households missed or defaulted on an essential payment such as a housing bill, loan or credit card payment over the month. Two thirds (61%) of those who missed a household bill payment reported that they missed more than one.
Rocio Concha, Which? director of policy and advocacy, said: “Although UK inflation is slowly starting to fall, these record levels of worry about housing costs and the looming threat of higher interest rates later this month shows that for many people, the cost-of-living crisis is far from over. We’d encourage anyone who’s struggling to seek free debt advice and reach out to their mortgage provider or landlord for help.
“As so many people face financial hardship, Which? is calling on businesses in essential sectors like food, energy and telecoms providers to do more to help customers get a good deal and avoid unnecessary or unfair costs and charges during this crisis.”
Speaking to the press, Scottish first minister Humza Yousaf said UK ministers are “not doing enough for homeowners who are struggling to cope with the cost-of-living crisis Westminster created”.
Members of Yousaf’s party have called for a mortgage tax relief scheme to be introduced – which would allow people to make mortgage repayments from their salary prior to tax and national insurance being taken off.
An HM Treasury spokesperson said: “The best thing we can do for borrowers with mortgages of any term is bear down on inflation and our plan to halve it this year is working, with the majority of external forecasters expecting us to achieve our ambition.
“Our Mortgage Charter, covering 90% of the mortgage market, is already helping people get through this difficult time by giving extra protections against repossessions and making it easier to manage monthly repayments.”
