20 Jul

Landlords 'set to raise rental prices'

Landlords 'set to raise rental prices'

Tenants can expect their monthly payments to rise if landlords increase fees on their properties to rent to match growing mortgage interest rates.

According to Homeowners Advice Centre's co-owner Chris Jenkins, the expected increase of one per cent on mortgage interest rate would have a direct impact on the profit landlords receive from their properties.

To combat this, Mr Jenkins said that "landlords will be forced to raise rent levels in order to cover their mortgages in the event of interest rate increases".

He added that if it led to the circumstance where landlords were being repossessed because interest rates were so high, this "could result in a shortage of rental property".

This, the homeowner advice professional said, "would result in a further rise in overall rent levels".

His comments were made in response to findings from Spareroom.co.uk, which revealed that 43 per cent of landlords said that if their loan interest rates rose by two per cent their rental income would not cover their mortgage repayments.ADNFCR-1222-ID-19898826-ADNFCR

Cookies We use cookies to ensure that we give you the best experience on our website. To find out more about our cookies policy, see our cookies policy here or in the footer.