Commenting last week on the Shelter report which reveals that the proportion of household income spent on mortgage repayments has doubled since 1997, Liberal Democrat Shadow Housing Minister, Lembit Öpik said:
“The Government needs to explain how it will support the families who have stretched themselves to buy a home and are now faced with sky-high mortgage repayments and the threat of negative equity.
“Without support, tens of thousands of families face repossession this year. How much more evidence does the Government need before they admit that there’s a problem? They are turning self-delusion into a science.”
The ROOF Affordability Index was released by Shelter last Thursday. It shows that:
a. Mortgage repayments are on average over 21% of working household income. In 1997 they were just under 12% of income
b. The average mortgage repayment in 2007 was £827.87 and in 1997 it was £304.80 in 1997.
Figures revealed by the Liberal Democrats earlier this month have shown that 60,000 families are at high risk of repossession after spending over 75% of their disposable income on mortgage repayments.