North has highest levels of  homeowners in poverty

A Foyle MLA has expressed serious concerns around the "security of tenure" for thousands of private renters and homeowners in the North.

Mark H Durkan MLA (SDLP) remarks came in anticipation of the Bank of England's expected mortgage interest rates rise, to a 15-year high of 4.75%, in its efforts to fight inflation.

Mr Durkan said this move will create a perfect storm for homelessness in the North which has the highest levels of  homeowners in poverty compared to other areas of Britain.  

He added: "Failure to act now will see the current housing crisis become housing chaos as mortgage interest rates skyrocket.  

“The pandemic and subsequent costs crisis has exposed the vulnerabilities of homeowners, placing them at reater risk of homelessness. People are facing the very real possibility of losing their home as well as those within the Private Rented Sector, who will be pushed onto a 45,000 applicant long housing waiting list.

"In my own constituency, I’ve already witnessed a spike in the number of constituents made homelessness due to loss of private rented accommodation. It’s clear that the consequences for our communities will be severe and will serve to aggravate the existing housing crisis. 

“It is incomprehensible that no action has been taken to date to support vulnerable homeowners. Since 2020, I have repeatedly called for a mortgage rescue scheme to avoid the situation now playing out. Despite being given several indications from the Communities Minister that work was underway, no support materialised."

Mr Durkan said the British Government needed to liaise with financial institutions to ensure they fully play their part.

He added: "I hope that mortgage providers will work constructively with borrowers to lengthen their mortgage period and switch to interest-only mortgage payments for a temporary period.

"Northern Ireland is in a precarious position; the private sector has faced exponential growth coupled with the highest rates of homeowners struggling to make payments means this region primed for disaster. The cost of not acting now doesn’t bear thinking about.”