The Bank of England is widely expected to hold the base rate at 4% today.<\/p>\n
Inflation stood at 3.8% for the second consecutive month in August, wage growth is slowing, while GDP growth is flat.<\/p>\n
The decision will be made public at 12pm today.<\/p>\n
Enrique Diaz-Alvarez, chief economist at Ebury, said: \u201cWe are bracing for a 7-2 vote, and forward guidance that acts to dampen expectations for cuts during the remainder of the year.\u201d
It\u2019s thought the Bank\u2019s Monetary Policy Committee could cut the base rate at the next meeting on November 6.<\/p>\n
James Smith, UK developed markets economist at ING, said: \u201cThere is still scope for services inflation to undershoot the Bank\u2019s forecasts further in the next release for September.<\/p>\n
\t <\/p>\n
\u201cIf we\u2019re right about that, it would tip the balance slightly more in favour of a November rate cut, which we still narrowly expect.\u201d<\/p>\n
Joseph Lane, founder and director of leading HMO brokerage experts, Mortgage Lane, talks through what this environment means for landlords.<\/p>\n
He said: \u201cFor buy-to-let landlords, the steady base rate offers breathing space after years of volatility. Margins have been under strain from higher borrowing costs and tighter regulation, but a stable rate should allow landlords to plan with greater confidence, whether that\u2019s refinancing existing deals or exploring expansion.<\/p>\n
\u201cHMO mortgage borrowers in particular are well-placed to benefit from this stability. With tenant demand for affordable shared housing at record highs, driven by the cost-of-living crisis, HMOs continue to generate yields of 8% or more, often outperforming traditional buy-to-let models.<\/p>\n
\u201cA steady base rate environment helps landlords secure more predictable financing terms, making it easier to refinance, release capital for refurbishments, or pursue new acquisitions.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
The Bank of England is widely expected to hold the base rate at 4% today. Inflation stood at 3.8% for the second consecutive month in August, wage growth is slowing, while GDP growth is flat. The decision will be made public at 12pm today. Enrique Diaz-Alvarez, chief economist at Ebury, said: \u201cWe are bracing for […]<\/p>\n","protected":false},"author":1,"featured_media":3676,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-3675","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-second-home"],"yoast_head":"\n