The Resolution Foundation said the way the government had tackled the spike in inflation this year – relying heavily on the Bank of England’s interest rate rises – put “mortgage households at the heart of the Britain’s income squeeze”.
In a report that underscores the dramatic rise in costs facing ordinary families, the thinktank said 3m households face a £3,000 a year increase in their mortgage costs by the end of the 2023-24 financial year.
A rise in mortgage rates and the broader impact of inflation on food and transport prices will amount to a 12% decline in real incomes for a typical mortgage household between 2021-22 and 2023-24.
Older, more affluent households will makes gains, the thinktank said, as rising interest rates cause an upswing in savings and investment income next year.
Read more at The Guardian
