Real Estate Facts: More and More Britons are Unable to Pay Their Rents and Home Loan Rates

According to recent data released by consumer review agency Which?, nearly 700,000 households in the UK were unable to afford or have delayed rent payments and home loan interest payments in April 2023. This is a significant increase from the same period in 2020 and 2021, with on average 1 in 20 UK households struggling to make ends meet.

The high levels of late payments and overdue rent or mortgage payments come as the Bank of England (BoA) is expected to raise interest rates, directly impacting lending rates for UK banks. This expected move has sparked concerns that the already high cost of renting or buying a home in the UK will continue to rise, putting further strain on struggling households.

Real Estate Facts: More and More British People are Unable to Pay Their Rents and Home Loan Rates

According to experts at Which?, households that are struggling to cover the rising cost of rent and home loan interest payments are having to cut back on necessities, shift to savings, or resort to borrowing or selling assets to make ends meet. This highlights the challenging financial conditions many households in the UK currently face as they struggle with the impact of the ongoing coronavirus pandemic and rising cost of living expenses.

While the new data highlights the struggles faced by many UK households, there are calls for action to address these issues. The UK's Consumer Agency has called on businesses in essential sectors, such as food and energy, to do more to help customers get the best deal and avoid unnecessary or unfair costs and fees. This could help ease the financial burden on many households, and ensure that essential items such as food and energy remain affordable for all.

As the BoA finalizes its decision on interest rates, it will be important for policymakers to take into account the impact that further rate increases may have on the financial security of UK households. By working to address the root causes of the rising cost of living crisis, there could be a greater chance for all households to make ends meet and thrive in the years to come.