With the Bank of England cutting interest rates to a new all-time low of 0.25% – with another small cut on the cards, buy-to-let (BTL) properties are once again looking appealing. Lower interest rates will do little to help frustrated first-time buyers get onto the housing ladder. But they will ensure that the income returns offered by BTL investments continue to be relatively attractive. As a result, it is likely investor demand for housing should hold up reasonably well. The Bank of England’s Monetary Policy Committee (MPC) is hinting strongly at a further rate cut later in the year, it is expected the Bank Rate will fall to 0.1% in November at the latest. As a result, it is expected mortgage interest rates will fall again to an all-time low by the turn of the year. These ultra-low mortgage rates should then filter through to the BTL market with the yield on bricks and mortar offering investors a return not seen in other financial assets. So to date after the Brexit vote it would seem as always owning property is still a very viable option with no sign of this changing in the near future. Yes, landlords have been hit via various taxation changes lately but the overall long term returns on property seem to be holding up well. Can we assist? If you are looking for a new or re-mortgage please do contact one of our fully qualified advisers and they will be happy to help.
