As UK housing costs soar, anxiety grips homeowners and renters: 'I'm in meltdown'

abcnews.go.com:

For millions in the U.K., the cost-of-living crisis just never seems to ease

LONDON — For Sadie James, the cost-of-living crisis in Britain just never seems to ease.

First, it was skyrocketing energy and food costs stemming from Russia's invasion of Ukraine. Now, the 61-year-old worries whether she can keep a roof over her head.

James, who lives in south London, has struggled for years to stay on top of her finances. Just as she was starting to clear her debts, she's back to square one: Her rent keeps rising, and on top of higher food and energy bills, her welfare payments just can't keep up.

“I’m actually in a meltdown each time I think about it," said James, who cannot work because of underlying health problems. “I’m literally depressed, I’m angry, I’m totally overwhelmed about it because I don’t want to lose my home.”

Interest rates have risen rapidly in recent months, which in turn have ratcheted up mortgages and rents across the United Kingdom. Rates have hit 5% after being below 1% for the past decade as the Bank of England has tried to bring down the highest inflation in the Group of Seven major economies.

As is often the case, the poorest households are bearing the brunt. The rate hikes have led to the biggest fall in household wealth in Britain since World War II, according to new research from the Resolution Foundation think tank.

Unlike the United States, where many mortgages are fixed for up to 30 years, U.K. homeowners are more exposed to changes in the cost of borrowing because a large percentage of them have loans that need to be renewed every two or five years.

Around 2.5 million such deals are due to expire by the end of next year, with around a million households facing a 500-pound ($655) monthly