The latest Bank of England base rate cut is expected to boost the rental market, according to Principle Estate Management.
The company said this this latest cut would help landlords buy more properties and upgrade existing stock, which should bring more stock and therefore stability in rental prices.
Jaime Duffy, lettings business development manager at Principle, said: “Put simply, this rate cut could spark more activity, lead to better-quality homes, and make the rental market busier and more competitive.
“Interest rates move with market conditions — and there’s no guarantee they’ll stay this low for long. Acting now could allow you to lock in a favourable mortgage rate before further changes.”
She urged landlords and property investors to act now and grasp the opportunity to refinance and reduce monthly mortgage payments, potentially acquire additional properties while borrowing remains affordable, and increase rental yields by improving and expanding portfolios.
The Bank’s latest base rate cut from 4.25% to 4% brings it to its lowest level since March 2023.
Duffy added: “For landlords and property investors, this isn’t just a small percentage drop, it’s a financial opportunity with real potential to boost your portfolio, increase returns, and strengthen your position in the lettings market.”