'Further squeeze on the already overheated UK rental market'

Jonathan Gordon, director at IP Global

"This increase in the base rate, while expected, is likely to put a further squeeze on the already overheated UK rental market.

“The shortage of affordable housing stock is widely documented. However, it looks like savers who are waiting for a fall in borrowing rates before they purchase are likely to defer their decision for longer.

“In the short term, this is likely to add further pressure to rents as the supply and demand imbalance continues.

“Landlords are also likely to increase rents to mitigate the impact of higher borrowing costs. It's a blow for tenants as much as it is for many borrowers."