Interest rate rise could result in more rapid rent increases

interest rate rise
Interest rate rise could trigger rent rises

With the Bank of England’s Monetary Policy Committee expected to announce tomorrow (Thursday 2nd November) the first rise in interest rates in a decade, it has been suggested that it could result in a financial blow to buy-to-let landlords and result in more rapid rent increases.

The Landbay rental index report comments that the cumulative effect of the changes such as the extra 3% stamp duty on additional homes and the graduated removal of mortgage tax relief, when combined with even a relatively small interest rate rise could galvanise landlords to pass on the additional burden in the form of rent increases.

 

Full story available from PropertyWire: https://www.propertywire.com/news/uk/interest-rate-rise-final-financial-blow-uk-buy-let-landlords/

 

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