Property investors expect base rate rise

Property investors are expecting the base rate to be increased over the next year, new research has shown.

The Bank of England's Monetary Policy Committee (MPC) held the base rate at its current level of 0.5 per cent this month.

A study from Young Group indicated that landlords and other investors are preparing themselves for rises in the next few months though.

Residential property investors are expecting the rate, which affects house prices and other areas of the property market, to reach higher than one per cent by the third quarter of next year.

Neil Young, chief executive of Young Group, said: "Residential property investors are mindful that rates will not remain at the current historic low forever.

"Investors expect to see an upward movement in base rate from the current historic low of 0.5 per cent, but that the uplift will be gradual, as you would perhaps expect when emerging from an economic downturn."

A policy of quantitative easing is being followed by the Bank of England in an effort to encourage more business in the marketplace.

Get a landlord house insurance quote today from Simple Landlords Insurance.