HOMEOWNERS in Barnsley are paying £101 more on their mortgage each month than they were doing in 2022 prompting 15 per cent of them to remortgage their homes last year.
In the year to October 2022, inflation reached a 40-year high.
In response, the Bank of England’s Monetary Policy Committee gradually raised the Bank Rate from 0.1 per cent to 5.25 per cent between winter 2021 and summer 2023.
By the end of 2023, more than a third of those responsible for rent or mortgage payments in Great Britain were struggling to afford them, according to the ONS Opinions and Lifestyle survey.
The ONS analysis shows 15 per cent of homeowners in Barnsley were remortgaging in 2023.
The average monthly repayments went up by £101, from £466 before last year to £567 in 2023.
Overall, the increased cost took up 23 per cent of their household disposable income.
StepChange, a charity and debt advice service, said rising housing costs have been a ‘major driver’ of the cost-of-living crisis.
Simon Trevethick, head of communications, said: “Repeated interest rate rises have pushed mortgage payments up for hundreds of thousands of people and rents have risen to record levels both inside and outside of major cities, as private renters especially feel the pinch.
“We want to see the government supporting households facing increased costs.
“We have long called for an end to section 21 no fault evictions, as well as a tenancy support scheme ahead of evictions as a last resort.”
He added the Mortgage Charter, brought in by the government last year to help people with sudden increases in mortgage costs, is coming to an end in July.
“The government should reassess removing help for mortgage borrowers to ensure there isn’t a cliff edge for those coming off their fixed term deals later in the year,” he said.
Further analysis by the ONS shows an estimated nine per cent of private renters in Barnsley were affected by rising rental costs.
Of those affected, the average monthly rent increased from £527 before 2023, to £575 last year.
The figures show the increased cost accounted for 23 per cent of these renters’ household disposable income.
The ONS assigned each area an ‘exposure score’ relative to other local authorities based on the proportion of households affected by rising costs and how much the increased cost took from household disposable income.
Rent and mortgages in Barnsley were both scored a two out of seven, meaning they were at low exposure to rising costs.
A government spokesperson said: “Our landmark Renters’ Reform Bill is progressing through Parliament and will give tenants more security in their homes.”
They added a new Private Rented Sector Landlord Ombudsman will be introduced so private tenants can escalate complaints if they are unhappy with the service they receive from their landlord.
“We recognise the cost-of-living pressures tenants are facing, which is why we are providing a £108bn cost of living support package over 2022-2025 worth an average £3,800 per household.”
