Rate cuts needed to ease pressure on landlords

News Category: Industry News

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Interest rate cuts are needed to reduce the financial pressure facing buy-to-let landlords, an expert has said.

Oliver Gilmartin, senior economist for the Royal Institution of Chartered Surveyors, said landlords should account for the possibility that their tenants might not be able to afford rent as the economy continues to slow.

The country is on the brink of recession and with increasing fears over job losses, house prices are unlikely to recover in the short-term, he said.

Mr Gilmartin believes the Bank of England will need to cut interest rates by at least 50 basis points next week to help manage the difficulties facing the UK economy.

It comes as statistics from the Nationwide house price index today showed that house prices have fallen for 12 consecutive months, with the average property worth 14.6 per cent less this month compared to October last year.

Fionnula Earley,chief economist at Nationwide, commented that the average house has seen its value drop by £30,000, but the current average price of £158,872 is still about £30,000 above the price of a typical property five years ago.

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