It is becoming increasingly difficult to buy or rent a home in the UK

Across Europe, thousands of people have seen their bills rise from month to month. The increase in the cost of living is being felt in many countries, and the UK is just one of many examples. With inflation at around 8% and interest rates at their highest levels in the past 15 years, more and more Britons are finding it difficult to make their mortgage or rent payments.

Sadie James, one of many examples, is 61 and every month she goes through her bills with a fine-tooth comb, but increasingly feels it is difficult to pay them. It's renting, but it's also feeling the highest interest rates in the last 15 years.

“For me, it's like if I were evicted now, I would be homeless. I can't do that. That would leave me completely stranded. Then they would put me in a hotel. Me too.” This is a nightmare for my life. I can't, I can't do it. So the main thing I have to make sure is that the rent is paid, regardless of whether they are increasing it by the minute.”

In the United Kingdom, inflation fell to 7.9% in JuneBut the reference interest rate is 5% and may reach 5.75% by the end of the year.

On average, home loans account for a fifth of salaries

Buying a home has become increasingly difficult, and renting one is not easy either.

“The reason the situation is more dire for renters is that someone with a mortgage, on average, spends a fifth of their income, or about 22% of their income, on housing expenses. But in the private rental sector, Mobin Haq, CEO of the Kingdom Equity Fund, explains United States, one-third of income was spent on housing costs, so 33% was actually spent on housing.

In the UK, a large proportion of home loans are offered at a fixed interest rate for two or five years.

The Bank of England estimates that by the end of 2024, 2.5 million credits will have to be renegotiated One million households will see their home payments increase by around €700 by 2026.