SDLP Foyle MLA Mark H Durkan
It comes after the Bank of England raised interest rates on Thursday to 3% in response to inflation, representing the largest increase since 1989.
He said a mortgage support scheme must be introduced as a matter of urgency to help families deal with the threat of recession.
Mr Durkan has repeatedly called for a mortgage rescue and support scheme to be implemented during the coronavirus pandemic and cost of living crisis.
Said the Foyle MLA: “The Bank of England’s 3% hike in interest rates sets the picture for a gloomy financial forecast and will undoubtedly increase anxieties for many homeowners who already struggling to make ends meet.
“While 3% may not seem much just yet the impact will be felt in the months ahead, in real terms this increase will see mortgage payments rise by hundreds of pounds.
“Economists are predicting that inflation will remain in double digits for quite some time which will ultimately lead to further interest hikes down the line.
“The picture for people in Northern Ireland could not be starker- according to research by the Joseph Rowntree Foundation, pre-cost of living crisis we had the greatest proportion of homeowners in poverty.
“In fact, there were twice as many NI homeowners in mortgage arrears compared to elsewhere in the UK. That position which has likely worsened in the intervening four years since this research was first published.
“Over the past two years I have repeatedly petitioned both the Finance and Communities Ministers to implement a mortgage support scheme to help people who are under serious pressure.
“I raised it during the pandemic, when the cost of living crisis began to bite and now we are on the verge of a recession with no action being taken.
“Ministers had ample opportunity to address this issue when the institutions were up and running and again people have been let down.
“It’s clear that Northern Ireland will be the most adversely impacted by the cost of living crisis and unless people are given immediate support, the consequences for society will be severe.
“The threat of repossession is very real and will result in families, both homeowners and those within the Private Rented Sector, losing their homes.
“These families will be pushed onto a 40,000 applicants long housing waiting lists which is already struggling to meet demand.
“The current economic situation has created a perfect storm aided by the inaction of Stormont and Westminster.
“This news serves to highlight the damage 12 years of Tory leadership has had on society.
Their legacy will be that of increased homelessness, a weakened economy, rapid decline in living standards and a generation of children reliant of foodbanks.
“They’ve made a Dickensian nightmare, society’s reality. Meanwhile the most vulnerable are paying the price for their failure.”
Tags: