Warning about the impact this will have, he said there could be a "knock-on effect" that may "restrict or stall growth in house prices". Mr Heywood said: "This sharp increase has meant that mortgage payments will now take up over 50% of an average UK monthly income (£2,560)." "This sharp jump in mortgage payments is likely to have a profound impact on many of these consumers, eating up a significant percentage of their incomes which are already being squeezed on all sides – this is an effect we call Mortgage Shock’" he said.įor those just joining the housing ladder, average monthly repayments have spiked by 40% compared to December 2021 – average payments are around £1,400 and likely to increase. Paul Heywood told Sky News there is a "serious risk" consumers could become "mortgage prisoners" with the current state of rates, and monthly payments now take up more than 50% of average UK income. More than 367,000 mortgages are expected to come to an end of their five-year fixed rate deals in the next 12 months, according to Equifax's chief data and analytics officer, and many borrowers will see their interest rocket to more than 5%. We've spoken a lot about mortgages this week, and sadly it doesn't seem the situation around rates is going to get better anytime soon. "This frenzied market is likely to see prices continue to rise in the coming months." "The fact that the London market is rising in terms of average price while the cheapest area in the country is falling shows that the level of demand somewhat depends on location," Mr Halstead added. The cheapest place was found to be the North East of England, which saw prices fall by 2% to £632 a month. The most expensive place to rent is London, with tenants paying an average of £2,039 a month - the highest amount ever recorded, according to the company's latest data.
We are again urging landlords to consider Rent Guarantee insurance as the likelihood of tenants struggling to pay their rent grows with each passing month," said Andy Halstead, HomeLet & Let Alliance chief executive officer. "Rental prices remain high, which brings a level of risk for both tenants and landlords. That marks a 1.2% increase from the average £1,199 bill in April.
Average rents across the UK have gone up again, rising to £1,213 a month, according to HomeLet.
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