Base rate hold 'suggests further problems for landlords'

News Category: Industry News

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The Bank of England's decision to maintain the base rate at 0.5 per cent may be a sign that difficult conditions continue to lie ahead for landlords.

Property website Smartlandlord has interpreted the Monetary Policy Committee's latest base rate ruling as a sign that conditions in both the property market and the overall economy are likely to remain stagnant for the immediate future.

As a result, the site warned that tenants remain in danger of unemployment and reduced pay, which could have knock-on effects on landlords and letting agents due to the increased risk of non-payment of rent.

Keshav Thukaram, managing director of Smartlandlord, said: "Landlords need to be safeguarding their income with rent guarantee products which will protect them against non-payment of rent and provide legal expense cover."

Earlier this week, new research by Arla revealed that 93 per cent of its members have seen an increase in tenants attempting to secure rent reductions.

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