Low interest rates 'good for landlords'

by Morag Lyall

Low interest rates will mean that landlords will find financing "stable and relatively affordable", one property expert has said.

Last week the Bank of England announced that interest rates would remain at 0.5 per cent.

This has led Chris Horne, editor at Property Hawk, to note that landlords are "seeing some sorts of opportunities".

In addition, Mr Horne said: "The finance market and the mortgage markets have recovered from the lows of last year, so there are more mortgage products," while figures also suggest that rent prices are increasing.

"Property prices are, if anything, coming down which is good news for landlords because it means that rental yields are likely to go up on the back of falling capital prices but increasing rents."

His comments are supported by a report by Upad, which found that 60 per cent of landlords with tenancy agreements said they were more confident about the industry this month than last.

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Published on: July 13, 2010

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