According to a recent survey by the BBC’s Panorama programme, over 30% of people in the UK are spending more than a third of their monthly income on their rent or mortgage. This high percentage of their monthly income means that people are struggling to make ends meet in other ways, often faced with the choice between paying for their housing costs and paying for food and other household necessities.
High living costs are combined with a serious lack of affordable housing to create this situation, as the past couple of years have seen rents and mortgages steadily rise, with no rise to match when it comes to wages and benefits. This means that people earning the same amounts of money are beginning to struggle as their living expenses begin to far outweigh the money they have coming in.
This situation raises further concerns for those in less stable financial situations, such as the self employed and contractors, as the possibility of earning less could actually means homelessness rather than just having to cut back on luxuries.
The Government is trying to ease this situation with ideas such as the FLS Scheme, which guarantees your mortgage and allows those in less stable positions to take out mortgages from major lenders, but because the cost of homes isn’t affordable to so many people, even being able to take out a mortgage does not make this a viable option for many.
London frequently comes out worst when it comes to the high cost of living and the low numbers of affordable housing, but much of the country is now catching up with this. In order for the country to see a more fluid mortgage market, and for people to become more secure financially, something needs to change.