Blog Post

Interest rate rises to 5%

Publish Date: 22 June 2023

By Jade Shrubsole

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Interest rate rises to 5%

Further reading

Q2 2023 PAD Report

What to do before buying a property at auction?

Interest rate rises to 5%

Existing homeowners with adjustable-rate mortgages face higher monthly payments and we see many investors with terms coming to end, putting these investment properties back to market.  

The UK continues to experience a high demand for rental properties, especially in major cities and university towns. This demand is driven by factors such as a growing population, an increase in the number of students, and a rising number of young professionals who prefer renting over homeownership. This demand provides investors with a steady pool of potential tenants.

Rental yields in the UK can be attractive, particularly in certain regions and cities. Areas with strong rental demand and limited housing supply often offer higher rental yields. This can provide a consistent stream of income for investors.

Current investors with terms are ending or adjusting onto higher rates, tend to cut their losses and sell through auction. We are seeing a lot of new investment deals coming to the market, that are still offering very attractive yield incomes.

You can run a search for investment properties coming to auction using our detailed search functionality on our website.

We have a number of tutorial video’s available on our YouTube.

 

 

 

 

 

 

 

 

 

 

 

 

 

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