Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Link to this page: http://www.socialistparty.org.uk/issue/470/1973

From The Socialist newspaper, 18 January 2007

Interest rate hike pushes up costs

THE BANK of England monetary policy committee has put up interest rates to 5.25%. This move will add to the pressures on wages which are struggling to keep pace with price rises. Officially the annual inflation rate is around 3%. Unofficially it's around 4.9%, and with big rises in gas and electricity prices inflation is much worse the lower the level of pay.

This move was largely an attempt to 'take the heat out of the housing market'. In fact it will add even more to the burden of debt, especially in housing. The average mortgage payment for a two-person household on average income will rise to 14.6% of take-home pay.

That's similar to the level that caused so many repossessions in the early 1990s. The monthly cost of repaying a £200,000 mortgage, amazingly now the average, has gone up £32 through one government keystroke.

In the past ten years, house prices have far outstripped most people's incomes - the cost of buying a home has risen by 278%. This is made worse in London by the cornering of two-thirds of new homes by buy-to-let investors who stand to make big profits. Properties have increased greatly in value but most people still buy houses to live in and need to buy another property if they sell one.

Up to now, property repossessions have been at a low level - mortgage lenders have seized 'only' 8,000 properties in the first six months of 2006. But the extra cost could push the numbers up to the hundreds of thousands hit by the repossession crisis of the early 1990s under Thatcher and Major.

Housing is being pushed beyond the reach of many people. A socialist society could cancel local authority debts and offer mortgage-holders low interest loans.

New Labour have not only sent house prices rocketing and presided over a record low level of house building, they are also going hell for leather to sell off council housing that could offer a real alternative to the rule of profit in housing. Working people need a socialist housing policy.

See article on website: www.socialistparty.org.uk/2006/464/pp25.htm

Why not click here to join the Socialist Party, or click here to donate to the Socialist Party.


In The Socialist 18 January 2007:

Labour ministers make us sick!

Keep up the pressure for 3 March demo


Socialist Students

Anger against top-up fees grows


War and terrorism

Iraq: Bush continues his dangerous blunder

Blair's vision: 'wars without end'

The Trial of Tony Blair


International socialist news and analysis

"We're moving towards a socialist republic of Venezuela" - Hugo Chávez

The veil and Muslim women

Sri Lanka: Urgent action needed

Fighting for a socialist world


Socialist Party news and analysis

Interest rate hike pushes up costs

Academies myths

What's behind the school leaving proposals?

Campaign for a new workers' party


Socialist Party workplace news

PCS stands firm on pensions

Fight the government's sell-off plans

Strike ballot put on hold once again

Re-instate Unique workers!

British Airways pensions

Fujitsu workers strike

'Single status' battle in Manchester

UNISON NEC elections


 

Home   |   The Socialist 18 January 2007   |   Join the Socialist Party

Subscribe   |   Donate  




Related links:

Housing:

triangleSix months on - still no justice for Grenfell

triangleThem & Us

triangleTwo in five 'right to buy' homes now for let

triangleThe Socialist Inbox

triangleRough sleeping crisis: make homes, not arrests

Sub-prime:

triangleTories flog bank assets to hellhound US profiteers

triangleGlobal finance crisis deepens

triangleOil price shock - the chaos of capitalism

triangleNationalise Bradford & Bingley

Repossessions:

triangleThe growing housing scandal

triangleNews in brief

triangleFast News

Interest rates:

triangleAmber warning lights flash on British economy

triangleHousing crisis: Corbyn's positive measures blanked by Labour's right

Reports and campaigns

Reports and campaigns

13/12/17

Woolwich

Support the Crossrail Woolwich walkout

13/12/17

Devon

Totnes MP uses coffin controversy to distract from brutal NHS cuts

13/12/17

Miners

Tory plan to hold dinner at coal mining museum defeated

13/12/17

Bradford

Bradford campaign to save children's services launched

13/12/17

Housing

Six months on - still no justice for Grenfell

13/12/17

Fracking

Movement growing against fracking giant Ineos

13/12/17

South London

South London health bosses' cover-up

13/12/17

Blacklisting

Unite day of action against blacklisting

13/12/17

Brighton

Brighton victory

13/12/17

Newham

Newham anti-academies strikes

13/12/17

Tamil Solidarity

Tamil Solidarity and Refugee Rights activists meeting

7/12/17

Blacklisting

Unite protest against blacklisting

7/12/17

RMT

Anti-DOO lobby of Liverpool's transport committee

6/12/17

Donald Trump

Mobilise to stop bigoted billionaire Donald Trump's state visit to Britain

6/12/17

Transport

Arriva bus strikers stand firm

triangleMore Reports and campaigns articles...


Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party

triangle13 Dec Support the Crossrail Woolwich walkout

triangle8 Dec Local government pay: fight for the 5% claim, fully funded

triangle6 Dec Strikers rally in Liverpool

triangle6 Dec Corbyn's Labour can defeat Tories with socialist programme

triangle5 Dec Victory at Glenfield shows people power can save our NHS

triangle5 Dec Labour council Blairites deselected

triangle30 Nov Victory: Glenfield Children's Heart Centre saved!

More ...

triangle13 Dec Caerphilly Socialist Party: Are we heading for an era of war?

triangle14 Dec Wakefield Socialist Party: Universal Credit - the Tories' latest assault on the poor

triangle18 Dec Leeds Socialist Party: Religion and Socialism

triangle19 Dec Bristol North Socialist Party: Christmas social

More ...

Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube

Archive

Archives:

December 2017

November 2017

October 2017

September 2017

August 2017

July 2017

June 2017

May 2017

April 2017

March 2017

February 2017

January 2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

Legal

SP RSS feed RSS

Platform setting: = No platform choice

V2