Rising rates 'not dampening landlords' property demand'

Rising interest rates have done little to damage the UK property market, as people like buy-to-let landlords continue to pick up new homes to let, experts have suggested.

Construction firm Persimmon said in a trading statement that the three interest rate increases that have occurred this year have had the effect of balancing the UK housing market.

Indeed, the company said that the rate rises - deemed necessary to curb inflationary pressure - have had little impact on the housing market due to strong demand from both consumers and private landlords looking to expand their portfolio.

"Recent interest rate rises have had the desired effect and the housing market is stable with only moderate price growth," the company explained in its statement.

"The market has continued to be resilient. In the absence of any major change to the UK economy we expect this situation to continue."

However, recently ARLA said that there was lack of supply of high-quality accommodation available in the UK market - meaning that landlords are struggling to find appropriate properties to let out.

"There is a shortage of all forms of housing in this country and these results show that the shortage of good quality property is also apparent in the rented sector," explained Adrian Turner, chief executive of ARLA.