Families in Portsmouth South are more than £1,500 better off when taking out a typical mortgage since Labour came to office, new analysis has found.
A household taking out a new, representative, mortgage on a £245,000 house in December 2025 – the median price in Portsmouth – will pay £1,570 a year less than if they took out an identical mortgage in June 2024, at the time of the election.
This means that families taking out a new mortgage are saving around £130 each month – putting money back in people’s pockets.
These savings have been felt by households in every corner of Portsmouth South.
If quoted mortgage rates fall by a further 0.5ppts over the coming year, that saving will rise to £1,960.
Following the disastrous Liz Truss mini-budget, two-year fixed mortgage rates shot up to over six per cent in October 2022. That piled misery onto families, adding hundreds of pounds onto their monthly bills when buying a home or remortgaging in the period that followed.
Chancellor Rachel Reeves’ management of the economy since the General Election has meant that interest rates on typical mortgages fell from 5.16% in June 2024 to 3.97% in December 2025.
That stands in stark contrast to the Tories’ catastrophic record which saw the economy crashed and family finances fleeced.
Nigel Farage’s Reform have promised to go further than the Tories’ disastrous policies, splurging billions on unfunded pledges, which risks interest rates rising again, and putting up every mortgage in the country.
The news on mortgages comes alongside a wider package of measures introduced by the Labour government that will give security to and protect the pockets of working people in their living arrangements.
As mortgage holders benefit from reduced costs, the Renters’ Rights Act – coming into force on 1 May 2026 – will see ‘no fault’ evictions banned, and it will become illegal for landlords and letting agents to:
- Increase rent prices more than once a year
- Ask for more than one month’s rent payment in advance
- Pit prospective tenants against one another through rental bidding wars
- Discriminate against potential tenants, because they receive benefits or have children.
Commenting, Stephen Morgan, MP for Portsmouth South said:
“I am proud to be part of a Labour Government that is delivering upon its manifesto commitments to tackle the issues that matter most for people across Britain.
“These figures clearly demonstrate that our approach to bringing down the cost of living is working, and I am happy to see that change is being felt across the country and including here in Portsmouth.
“I know that this will make a meaningful difference to many people across this city.”
James Murray MP, Labour’s Chief Secretary to the Treasury, said:
“The Tories dealt a hammer blow to family finances when they crashed the economy and sent mortgages, rents and bills soaring.
“Labour is bringing the cost of living down. We’ve stabilised the economy, leading to six interest rate cuts and lower mortgage costs.
“We’re also cutting £150 off average energy bills, freezing rail fares, freezing prescription fees, raising the minimum wage and lifting over half a million children out of poverty. This is the year when working people across Britain will start to feel the benefit of the change Labour is delivering.”
