Skip to main content
EconomyFamiliesHousingNationalNews and viewsParliamentPortsmouth

New Mortgage Hike: Portsmouth MP criticises government as 197,194 homeowners to be hit by higher mortgages in January

By 19 January 2024No Comments

Portsmouth MP Stephen Morgan has criticised the government following the release of new figures which show that homeowners across Britain remain worse-off this January after thirteen years of economic mismanagement and stagnating housebuilding under the Conservatives.

Having worked and saved hard to buy an increasingly unaffordable home of their own, 197,000 families – enough to fill Wembley Stadium twice over – are set to be hit with another bombshell as they come off their fixed-rate mortgages this January. This will add an average of £240 to their monthly bills.

These figures include 19,555 homeowners in the South East of England.

The new analysis comes as GDP figures in December revealed that the economy shrank in October, with households across Britain facing higher interest rates for longer.

Rising housing and mortgage costs stem from a toxic mix of chronic housing undersupply, the spiralling price of debt and stagnating economic growth, all caused by Conservative economic policy.

By getting Britain building again and providing the foundations of economic stability, Labour will tackle these problems at their root.

Commenting on the analysis, Portsmouth MP Stephen Morgan said:

“The Tory mortgage penalty is devastating for many families across Portsmouth and the rest of the country.

“At a time when the price of a food shop and bills are rapidly increasing, the last thing Portsmouth families needed for their mortgage to go up significantly due to the Conservatives mishandling of our economy.”

“Labour will bring financial and economic security back and will get Britain building again so that families can prosper and don’t find themselves living paycheque to paycheque.”

Angela Rayner MP, Labour’s Deputy Leader and Secretary for Levelling Up, Housing and Communities, said: 

“Over the last thirteen years, the Conservatives have taken a sledgehammer to the foundations of a good life in Britain, meaning a decent, secure home is unaffordable for so many. The Tory mortgage bombshell has added insult to injury, with those able to afford their own home facing eye watering mortgage costs this January. 

“People are worse off in almost every measurable way since the Tories first came to power because of low growth, low wages, spiralling prices and stagnant housebuilding. 

“Labour will get Britain building again and treat the public finances with the respect they deserve. We will cut red tape, build new homes and slash energy bills for good to ensure that people have more of their income where it belongs – in their pocket.” 

During the Autumn Statement, Labour unveiled its Better Off Plan to cut household bills by up to £3,000 a year over the next decade, including preventing a £1,200 annual hike to mortgage costs for new homeowners by building 1.5 million new homes to make housing more affordable. 

A Labour government will deliver the biggest boost to affordable housing for a generation, with social and council housing at its heart. This will help aspiring homeowners get on the housing ladder and ensure that existing homeowners benefit from the sustainable economic growth that underpins good wages and family finances.

The Plan would sit alongside Shadow Chancellor Rachel Reeves’ pledge to bring economic stability back to the UK, including a tough set of fiscal rules to avoid a repeat of the Conservative’s mini budget disaster for mortgages.