The Property Investor Group

In the wake of June’s 0.25% base rate rise – the fifth in the past 11 months – a report published last month by UCB Home Loans says that, in some instances, rising interest rates and increasing house prices are making it easier for landlords to let their properties.

This is because the combination of high house prices and more expensive loans is pushing more people into the rental market. Ironically, people are renting for longer because it’s more difficult to afford to buy, which is in turn providing a boost to the Buy to Let sector.

The report also indicates that sales of Buy to Let properties have continued at record levels over recent months, despite the fact that both property prices and interest rates on Buy to Let mortgages have been increasing.

This is partly because property investors typically take a long-term view of fifteen years or so when making a purchase, so short-term variations in interest rates are of slightly less concern to them than might be the case in the mainstream mortgage market.