According Nick Marr, co-founder of rental marketplace TheHouseShop, landlords who feel they have already been put under immense pressure by a raft of new legislation and changes to the Private Rental Sector over the past couple of years will not welcome the rise.
‘Many landlords are already feeling the strain on their finances from the Section 24 tax changes and increased stamp duty on second home purchases, plus there is the highly likely possibility of an increase in letting agency fees once the tenant fees ban kicks in. Adding to all these existing pressures with a further 0.25% interest rate rise could make it even harder for buy to le landlords to maintain their bottom line,’ he said.
He pointed out that research the firm carried out earlier this year found that almost one in three landlords were planning to raise rents in the next 12 months to help cover the increased costs of running their rental business. ‘With the added possibility of mortgage lenders upping their rates this proportion of landlords could increase even further,’ he said.