Interest Rates Raised to 0.75% by Bank of England – Landlord News


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Nick Marr, Co-founder of rental marketplace TheHouseShop.com, comments on the impact of the interest rates rise for tenants and landlords:“We were all expecting the announcement of the interest rates rise today, but that won’t make it any easier for mortgage holders and landlords to deal with. Landlords 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. 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 Let landlords to maintain their bottom line.”

“Our research from April this year showed that almost 1 in 3 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.”

“Unfortunately, this could mean that tenants end up taking on the cost of the rates rise, as Buy To Let landlords, in many cases, price their rental properties according to their mortgage repayments.”

 

Read more on Landlord News here


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