By using this website, you agree to our use of cookies to enhance your experience.
Graham Awards


Landlords braced for more interest rate rises in New Year

The Bank of England has raised interest rates for the first time in more than three years, in response to calls to tackle surging price rises.

The increase to 0.25 per cent from 0.1 per cent followed data this week that showed prices climbing at the fastest pace for 10 years. It came despite fears the Omicron variant could slow the economy by causing people to spend less.

As a result, landlords are bracing themselves for higher borrowing costs.


Angus Stewart, chief executive of online mortgage broker Property Master, says: “It looks as if even the intervention of the Omicron variant could not throw the Bank off its chosen path.  Now the process of rising rates has begun we should brace ourselves for further increases in the New Year.

“What we can say with certainty is the availability of low buy-to-let mortgage rates has to a large extent obscured the pressures on landlords operating in the private rented sector.  

“The impact on landlords of the increasing cost of regulation, higher taxes and the removal of various tax benefits has been cushioned whilst finance costs remained low.  As rates start to increase it will hit landlords in the pocket and we may well see at least the smaller ones decide buy to let is not an investment for them.”

The Bank's Monetary Policy Committee voted by eight to one in favour of the increase.

Rates had been at 0.1 per cent, a record low, since March last year, when they were cut in response to the effects of the pandemic.

Economists had expected a rate rise at the MPC's last meeting in November, but policymakers voted to hold fire. This time, analysts expected a further delay because of Omicron, but the committee thought differently.

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions.
If any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals, then the post may be deleted and the individual immediately banned from posting in future.
Please help us by reporting comments you consider to be unduly offensive so we can review and take action if necessary. Thank you.

  • George Dawes

    I’m quite prepared to sell up if interest rates get silly again , which they will

    Pay a load of tax , but big deal , you can’t take it with you

  • icon

    Yes George exactly up to 45% or more income tax while you have it. Licensees, Penalties, Fines, Rogue Citizen, 28% special C/gains tax for LL’s if you want out. 40% Grave Yard tax at the end, a very poor deal for a lifetimes efforts & dedication, better not think about it.

  • icon

    Been in the process of selling loads of mine recently over the short to medium term regardless of interest rates- as I'm sure many others are- but the interest rate thing might be the proverbial straw for many others who weren't.

    Been in the business since 1991 before the term BTL even existed and built a substantial portfolio. But todays PRS bears no resemblance to the commonsense and fairer times we had back then- tho it wasn't perfect- no rose tinted glasses here.

    But remember a straightforward S21 without strings, no DPS, no EPC's, no punitive income taxes, licensing , fines and tenants that didn't either blatantly or latently hate you because of the media lies and vilification we now suffer as being rogues and fat cats? And thats just to name but a few things off the top of my head.

    New epc requirements and getting rid of gas looming tipped me over the edge. I thought I was in it for life even toughing out the cr*p- hardcore style but enough.

    Shame selling now isn't like before though- remember taper relief on your cgt that ran on a sliding scale from 5- 10 years? And reasonable cgt in first place?

    Same gov that asked us to pick up the housing batton is now smashing us round the head with it.

    Enough. Just the building up over 30 years is going to take a while to dismantle again!


Please login to comment

MovePal MovePal MovePal
sign up