Landlords with buy to let mortgages are set to benefit from the Bank of England's interest rate cut of 1.5 per cent.
The base rate now stands at three per cent, which is "great news" for buy to let investors, according to Keshav Thukaram, the managing director of online resource Smartlandlord.co.uk.
Those on standard variable deals that track the Bank's base rate will automatically benefit from the reduction, while lenders may be prompted to make further cuts across their mortgage portfolios.
Mr Thukaram said the government has made "clear signals" to banks and building societies that they must return to 2007 levels of lending.
"New mortgages and new property sales will not gather momentum unless the rate cuts are passed on to landlords for their new mortgages and remortgages," he commented.
The National Association of Estate Agents also called on lenders to pass on the rate cut to consumers.
Friday 14 November 2008
Market recovery 'will lead to shortage of property to purchase'
Once the financial markets recover from the current downturn there will be a shortage of houses to buy, it has been claimed.
Paul Collins, the property editor of BuyAssociation, has predicted that when the market picks up, there "won't necessarily be enough properties to satisfy demand" for purchasers.
This could be beneficial for those with buy to let mortgages, as a shortage of houses available to buy could lead to more people looking to rent.
Mr Collins stated that the outlook for the property market is "probably a lot more optimistic than it's being painted at the moment".
And a lack of housing in the UK will contribute to the decrease in supply once people regain confidence and get back onto the ladder, he said.
The October 2008 Zoopla! survey has revealed that 38 per cent of property owners expect the value of their homes to stay the same or increase over the coming months.
Paul Collins, the property editor of BuyAssociation, has predicted that when the market picks up, there "won't necessarily be enough properties to satisfy demand" for purchasers.
This could be beneficial for those with buy to let mortgages, as a shortage of houses available to buy could lead to more people looking to rent.
Mr Collins stated that the outlook for the property market is "probably a lot more optimistic than it's being painted at the moment".
And a lack of housing in the UK will contribute to the decrease in supply once people regain confidence and get back onto the ladder, he said.
The October 2008 Zoopla! survey has revealed that 38 per cent of property owners expect the value of their homes to stay the same or increase over the coming months.
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