The detrimental impact of the increasing interest rates may increase the existing rental stock shortage faced by the UK property market.
Stephen Clark, from Finbri, a bridging loan broker, commented: “The base rate is directly linked to the cost of borrowing, so it’s not surprising that landlords are looking to increase rents.
“It’s not just tenants who may be affected by rent increases if interest rates continue to climb. The UK housing market as a whole could experience further undersupply and combined with a looming recession, there is a growing risk to the property market. We now know that if the base rate reaches 4.5% this year, 44.66% may look to sell their investment properties.”