Maintain focus on struggling renters - JRF responds to rise in interest rates

Responding to news that the Bank of England has raised the base rate from 0.5% to 0.75%, Ashwin Kumar, Chief Economist at the independent Joseph Rowntree Foundation said:

“Housing costs make a huge difference to whether a family is managing on a low income or being swept into poverty. While much of the focus today will be on the effects on mortgages it is also important that the Government maintains a focus on the people who are on the sharp end of high housing costs, and who are struggling to keep food on the table and a stable home.

“Today’s base rate decision will cost the average household with a mortgage £6.40 per month. Even with this increase, private renters will be spending over £350 per month more than mortgaged households to cover the cost of housing.

“The economy needs to work in the interests of people on low incomes and to enable everyone to build better lives for their families.”