Conservative economy crash means mortgage pain

Families in the North West face eye-watering mortgage hikes as a result of the Tories’ crashing the economy, reveals new analysis by Labour.

Bank of England data shows that homeowners coming off two-year fixed terms are set to be clobbered due to the Tories’ attempts to hand unfunded tax cuts to the wealthiest. Labour leader Keir Starmer called it a “crisis made in Downing Street but paid for by working people” as he renewed his calls for Liz Truss to reverse the “kamikaze budget” that has “crashed the economy” and seen interest rates and borrowing costs skyrocket.

Despite the government’s humiliating 45p climbdown, mortgage rates are still likely to top five or even six per cent. That would leave homeowners in London and the southeast facing average rises up to £915. Even in the northeast of England, where house prices are typically lower, the monthly spike will be up to £320. The increases are likely to prove unaffordable for many.

The increase in repayments will offset action on energy bills for many households. The government’s refusal to back Labour’s plans for a windfall tax on oil and gas providers meant that taxpayers were already on the hook for higher additional borrowing than they would have been under a Labour government. But Truss’ kamikaze budget has added to the region’s cost of living pain.

Families in Stockport deserve so much better than this Tory-made crisis.

There is an alternative. At our party conference Labour announced a comprehensive plan to target a homeownership rate of 70% and 1.5 million new homeowners.

We set out proposals to build more houses, raise stamp duty on foreign buyers to stop them buying whole developments off-plan, and give first-time buyers first dibs on newly built homes.

Our message is unequivocal: Labour is the party of home ownership.