Monthly interest costs have jumped by more than 250 per cent since 2021 for landlords who choose to use interest-only mortgages.
Octane Capital compared rates in October 2023, for a 75 per cent loan-to-value two-year fixed rate buy-to-let mortgage, with previous rates every year over the past decade.
While this has caused hardship for landlords, we also not the upwards trend of rental amounts along side the increases.
We will always advise that landlords stay acutely aware of the rental figures in the local area of their property, to ensure their rent does not fall behind the fair market rate.
If you are a tenant, it is important to understand why the rent in your local area have increased, and a landlord generally does not take the choice to raise the rent lightly. It is always wise for you to check the area to see what’s happening around you so that you understand why a rent has increased.
If you have questions about why your rent has increased, why rents in Reading, Berkshire still seem to be going up, or for any other query, please do not hesitate to get in touch.
A1 Property Management