Low interest rate 'helps landlords' - buy to let mortgages

22 June 2009

The low interest rate in the UK has been beneficial to landlords and the buy to let sector in general, according to the Association of Residential Letting Agents (Arla).

In March, the Bank of England's monetary policy committee (MPC) moved the base rate down to 0.5 per cent and this record low level has been maintained in the three months since.

Experts predict that the MPC will hold interest rates at the same level for the remainder of the year.

Arla operations manager Ian Potter revealed what this means for people with buy to let mortgages.

"Each quarter we glimpse a bit more activity as the bargains get snapped up and confidence is restored in buy-to-let as a viable long-term investment vehicle, particularly if the returns are rising too," he explained.

Mr Potter's comments come after nearly twice as many Arla members reported that landlords sold more properties in the second quarter of 2009, compared to the previous three-month period.

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