Tory voters lost faith in the ability of Rishi Sunak’s party to manage the housing market ahead of the election, figures reveal.
A results breakdown shows the Conservatives haemorrhaging support to Labour and the Liberal Democrats in seats with the most mortgage holders.
It came despite inflation falling to the 2 per cent target and rate cuts expected this summer.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said mortgage holders were ‘unconvinced’ that Sunak’s plan to fix the economy was working.
The Bank of England began to hike rates in late 2021 to bring rising prices under control.
No faith: A results breakdown shows the Conservatives haemorrhaging support to Labour and the Liberal Democrats in seats with the most mortgage holders
But the mini-budget unveiled by Liz Truss – who has now lost her seat – sent borrowing costs up in September 2022.
Rates are still at a 16-year peak of 5.25 per cent, which has piled on financial pressure.
AJ Bell director of public policy Tom Selby said: ‘Given the crippling rises in interest rates, it is no surprise many have taken their frustration out on the Conservatives.
‘While you could argue that interest rates would have risen regardless, for many people that act of economic recklessness will have been enough to alter their voting intentions.’
In 2019, the Conservatives won in the 30 constituencies home to the highest number of mortgage holders.
Last week they lost more than half of them as Labour took hold of 12 constituencies including bellwether Dartford.
And the Lib Dems won six of the seats including Wokingham – previously held by Conservative grandee John Redwood since 1987.
The Tories managed to hold on to 12, including Old Bexley, Reigate and Croydon South.
Sarah Coles said: ‘Rising mortgage rates have taken a horrible toll.
‘While inflation may have come down, it’s not going to make much difference to someone wrestling with the additional monthly costs of remortgaging from a deal costing less than 2 per cent to one at almost 6 per cent.
‘It wouldn’t be a major shock if they were unconvinced that the plan was working, and decided they wanted a change.’
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