New analysis conducted by City Hall reveals that first-time buyers and those seeking to re-mortgage in London are facing a significant increase in their monthly mortgage expenses following

the autumn 2022 mini-budget. The analysis indicates that these individuals are now paying an average of £209 more each month on their mortgage compared to before the mini-budget was introduced.

According to the latest polling data from YouGov commissioned by City Hall, over 42 percent of Londoners with low to middle household incomes anticipate struggling to meet their mortgage payments in the next six months. This figure marks a notable increase from 34 percent reported in August of the previous year.

Mayor Sadiq Khan has consistently warned of the detrimental effects of high mortgage rates on lower-income households, emphasizing the risk of potential repossessions and subsequent housing insecurity and homelessness. He stresses the urgency for government intervention, urging the reinstatement of mortgage payment holidays to provide relief to struggling homeowners.

Additionally, the Mayor calls for the reversal of cuts to support for mortgage interest through the social security system and proposes options such as allowing homeowners facing significant financial difficulties to switch to affordable rented or shared equity housing to help them retain their homes.

Sadiq Khan emphasizes the need for immediate action from the government to address the challenges facing London homeowners. He urges proper funding to accelerate the construction of genuinely affordable homes, aiming to create a fairer and more equitable housing landscape for all Londoners.

Angela Kerr, Director of the HomeOwners Alliance, echoes the Mayor's concerns and calls for government support for struggling homeowners. She highlights the burden placed on homeowners due to increased mortgage costs and emphasizes the importance of finding solutions to prevent further financial strain on households.