Nearly half of people in Britain are struggling with a rise in the cost of maintaining their home after inflation hit a four-decade high, a group of experts has warned.
About 44% of working-age households were falling behind on rent and mortgage payments in November last year, up from 26% in January 2021, the Resolution Foundation said in a report released Saturday.
The figures, from a survey of 10,470 adults by YouGov Plc, illustrate how the cost-of-living crisis has intensified the pressures brought on by the Covid-19 pandemic.
Facing the fastest rent increases in a decade, renters are at the height of the crisis, with 8% of private renters falling behind on housing costs and 53% struggling in the three months up to November.
The picture looked even bleaker for social tenants, with 19% reporting falling behind on payments and another 44% saying they were having difficulties.
This meant many were unable to replace electrical items or turn on heating when needed, the survey found.
Meanwhile, mortgage holders have been hit by an unprecedented series of Bank of England interest rate hikes. The central bank is expected to follow through with a tenth consecutive hike on Thursday. Traders are pricing in a 25 basis point hike to 4%, with the benchmark rate expected to reach 4.5% in May.
The proportion of mortgage holders who fell behind or had difficulty making payments nearly doubled from 27% to 50% between January 2021 and November 2022. Despite the sharp increase, the total in trouble was still lower than among renters .
“With many renters reaching the limit of their finances already depleted, this restriction is having a profound impact on the well-being and budgets of their homes,” said Cara Pacitti, a senior economist at the Resolution Foundation.
“As housing costs are projected to continue to rise, the situation for renters will worsen without further political intervention.”
