The Office for National Statistics has today published analysis exploring how housing costs have and are likely to increase for mortgage holders and renters.
- More than 1.4 million households in the UK are facing the prospect of interest rate rises when they renew their fixed-rate mortgages this year.
- 57% of fixed-rate mortgages in the UK coming up for renewal in 2023 were fixed at interest rates below 2%.
- In the first quarter of this year, 353,000 fixed-rate mortgages will have to be renewed. ONS calculations, based on Bank of England transactions data, suggest that the number of fixed-rate mortgage deals coming to an end in 2023 will peak in Q2 2023 at 371,000.
- Private renters are also facing an increase in their housing costs, with rental price growth in November 2022 at its highest rate in the UK since records began in 2016.
- Renters spend almost a quarter (24%) of their median weekly expenditure on rent compared with mortgage holders who spend 16% of their median weekly expenditure on their mortgage repayments.
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