20
Jul
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.