Mortgage and Rental Costs

Tahir Ali Excerpts

Tuesday 27th June 2023 Commons Chamber

[Tahir Ali (Birmingham, Hall Green) (Lab)]

I will start by saying how serious this mortgage crisis is for many of our families. If we reflect on how the Government Benches are empty compared with the Opposition Benches, it demonstrates the seriousness with which the Government take this issue. No wonder the Prime Minister said, “Hold your nerve.” The contributions from Government Members on this issue, which affects millions of people, again demonstrate their lack of empathy and the lack of seriousness with which they take this important situation.

We are in this mortgage crisis because of the mini-Budget. Imagine for a moment if that had not been a mini-Budget, but a full Budget—what other crises would we now face after 13 years under Tory Government, when they have broken this country for millions of our residents and constituents? Overnight, damage was inflicted, with increased payments for millions of mortgage holders. Mortgages were withdrawn overnight and house sales were cancelled. Mortgage rates went up and payments went up for millions of our constituents. In my constituency, 7,700 households are affected by that decision, with an average increase of £2,700 a year. Many of those households are run by key workers—the very workers we were clapping. Today, we are slapping them in the face by saying, “We will not help you with a decent wage increase. We will not help you with mortgage increases. We will not help you with the cost of living crisis.” That is the reality we are facing.

People should not be fooled by the words of Government Members when they say this is a global crisis. Look at their 13 years in office. Where are we with mortgage rates now? Under the previous Tory Government, where were we with mortgage rates then? They were at 15%, and we had record repossessions. This is a repeating of history and of what the Tories are good at: making sure that the poor get poorer and the rich get richer. That is what they stand for. I challenge Government Members to tell me—I see one shaking their head—how many of their constituents and households are affected by this mortgage increase and what the average increase is. I will give way to the hon. Member for Totnes (Anthony Mangnall) if he knows the answer.

[Anthony Mangnall (Totnes) (Con)]

I cannot speak in this debate—sorry.

[Tahir Ali]

My heart bleeds for those people. The Government have denied millions of workers in this country a decent pay increase, which would have allowed them to deal with the cost of living crisis. But no, what does the Prime Minister of this country say? He asks the public to hold their nerve. This is not about nerve; it is about the basic fact that life has become unaffordable for millions of people as a direct result of the Government’s failed approach. Instead, the responsibility falls on ordinary hard-working people. Meanwhile, the Government continue to sit back and watch the chaos unfold.

What about the renters? Yesterday, the Chancellor failed to mention renters in his speech at all, showing the Government’s complete disregard for this mounting issue. Renters face an unsustainable increase in rents as landlords deal with mortgage costs. Renters cannot continue like this. The Government are not in a position to help ordinary hard-working families. They should give way and call a general election.