Even individuals who own homes are now facing challenges due to rising interest rates and the increasing cost of living. The issue is complex, but the government has the ability to take action and shouldn’t claim ignorance.
Despite significant efforts to build more homes, delivery is falling behind demand due to various obstacles. If the government had shown greater determination and a quicker response, the negative impact on people in terms of financial and emotional stress could have been avoided.
A new mortgage arrears crisis is currently underway, as highlighted by Charlie Weston. Numerous borrowers are being squeezed by rising interest rates and finding it increasingly difficult to cope. Many of these individuals were already under significant strain.
With interest rates ranging from 8.5% to 10%, these individuals are being pushed to their limits.
Many of those who are struggling had their loans sold to vulture funds and had their mortgages restructured, leaving them with no flexibility in already tight budgets.
This situation puts many families at risk of losing their homes. The government and Central Bank should have anticipated these dangers and implemented some form of support to stabilize rates at a sustainable level.
While it is not in anyone’s interest to evict people from their homes, vulture funds will expect a return on their investments, making engagement necessary.
As more people fall into arrears, it is crucial for the government to proactively provide the necessary funds and alleviate the crisis.
Debt management is important, but there must be reasonable timeframes to allow people some breathing space to fulfill their financial obligations.
The lack of affordable housing is not just an economic issue; it is also a social and human crisis that demands immediate attention. We need to accelerate the construction of homes and ensure that those who already have homes can keep them, to the best of our ability.
While there is a growing demand to establish the right to adequate housing as a constitutional right, this discussion becomes somewhat irrelevant without enough homes for those in desperate need or sufficient state protection for existing homeowners.
Without a more radical approach, the current situation may worsen.
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