WIREDGOV

The Bank of England's Monetary Policy Committee has today taken the decision to raise the base rate to 5.25% - the fourteenth occasion on which it has decided to increase rates since 2008.

This move follows a long period of turbulence across the private rented sector, with many landlords greatly affected by the impact heightened rates have had on their position in the market.

In response to today's news, Ben Beadle, Chief Executive of the National Residential Landlords Association, said:

“Today’s rate rise will pile yet more pressure on to renters and landlords.

“The Bank of England has warned that the average increase in monthly repayments on buy-to-let mortgages by the end of 2025 will be around £275. This comes as some landlords have already seen their mortgage payments increase by almost 240% since December 2021.

“With landlord profits at their lowest level for 16 years, the vast majority are doing all they can to protect tenants from the impact of growing mortgage rates. However, without Government action, renters face a bleak future as growing costs lead to a loss of more rental homes from the market.  

“Analysis for the NRLA has found that 735,000 rental properties could be lost across the UK if interest rates peaked at 5%. With an average of 20 requests to view each available home to rent already, today’s announcement will only worsen matters. 

“The Government must urgently scrap tax changes which have dampened the supply of much-needed private rented accommodation. Likewise, it is also crucial that housing benefit rates are unfrozen so that vulnerable tenants receive assistance during this challenging period for the market.”

You can read further details on the Monetary Policy Committee's decision here.