David Hannah, Group Chairman at Cornerstone Tax commented on the ONS’s findings telling us:
“It’s deeply concerning that 30% of people are finding it hard to service their mortgage or rent amid the cost-of-living crisis. We’ve all got used to low interest rates and, while these haven’t risen dramatically compared to the 1980s and 1990s, they have undergone a proportional increase.
“This is as an unwelcome surprise at a time when food and fuel costs are rising and wages are struggling to keep pace with inflation. Families prioritise their day-to-day living i.e. food, heat and light over long-term commitments such as mortgages and rent. This is probably why families are struggling – because of the increase in basic staples, their disposable incomes are reducing, and they must spend their money in this area first.
“I do think the government also needs to do more to try and curb the increases in rent and mortgage payments. There is a very clear issue in the UK property market at the moment – demand is way outstripping supply. This is causing prices to soar, and it remains to be seen how quickly they will settle.”