Rising inflation and interest rates strain Mendip renters and homeowners
By Laura Linham
29th Jul 2024 | Local News
![Simon Trevethick from StepChange, a charity and debt advice service, emphasised the broader impact of these cost increases. Simon Trevethick from StepChange, a charity and debt advice service, emphasised the broader impact of these cost increases.](https://storage.googleapis.com/nub-news-files/nub-news-file-storage/572633/conversions/yMe5YZifi1d3PxftujwtSCsHBRsTc3-metadmljdG9yaWFuby1penF1aWVyZG8tT3JjdzNRYWh1UzAtdW5zcGxhc2guanBn--article.jpg)
New figures from the Office for National Statistics (ONS) highlight the growing financial burden on private renters and homeowners in Mendip due to inflation and escalating interest rates over the past year.
According to the data, 12% of private renters have seen their monthly payments increase, with the average rent rising from £782 to £843 last year.
These heightened rental costs now account for 28% of household disposable income for these renters.
Homeowners are also feeling the pinch, with 14% remortgaging in 2023. The average monthly mortgage repayments rose by £166, from £768 to £933, now taking up 31% of household disposable income.
Simon Trevethick from StepChange, a charity and debt advice service, emphasised the broader impact of these cost increases. "Repeated interest rate rises have pushed mortgage payments up for hundreds of thousands of people and rents have risen to record levels both inside and outside of major cities, as private renters especially feel the pinch," he said.
Trevethick called for government action to support those grappling with higher housing costs. "We want to see the Government supporting households facing increased costs. We have long called for an end to section 21 no-fault evictions, as well as a tenancy support scheme ahead of evictions as a last resort." He also expressed concern about the upcoming end of the Mortgage Charter, which helped people with sudden increases in mortgage costs. "The Government should reassess removing help for mortgage borrowers to ensure there isn't a cliff edge for those coming off their fixed-term deals later in the year," he added.
The ONS has provided each area with an "exposure score" based on the proportion of households affected and the impact on their disposable income, with Mendip scoring a medium level of exposure.
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