The average monthly repayments for BTL mortgage holders will go up by approximately £275 by the end of 2025, according to the Bank of England (BoE) latest financial stability report.
The BoE data — released yesterday (12th June 2023) — also underlines the challenges and unfavourable market conditions which many private landlords now face across the PRS.
The report highlights that a combination of factors is putting pressure on [landlords'] profitability, with higher interest rates and structural changes, which include adjustments to income and capital gains tax rules, and proposed changes to building energy efficiency regulations and tenancy protection.
Responding to the report's key findings, Ben Beadle, CEO at the NRLA (pictured above), commented: “Growing mortgage costs are putting responsible landlords in an impossible position.
“Either they leave the market at a time when demand for rented housing is already outstripping supply, increase rents, or soak up growing costs which many simply cannot afford.
“While help has been provided for homeowners in the form of the government’s Mortgage Charter, nothing has been done to support the PRS.”
“It is vital that ministers step in to protect the market from the impact of growing costs.”
