19 December 2022 | Other

Landlords in Great Britain are hit by rate hikes

According to a report by the Telegraph, increasing interest rates in Great Britain poses risks to 365,000 rental objects. This is linked to losses that landlords will suffer when their mortgage deals expire in 2023.

As it was said in the report, citing consultant Capital Economics, other 182,500 rental properties might turn loss-making in 2024, if the rates remain high. The report also noted that such circumstances might cause a plunge in property prices due to landlords being forced to sell their objects under difficult market conditions.

One of the most notable mortgage lenders in Great Britain, Halifax, stated that there’s a possibility of prices going down by 8% in 2023. Another significant player in the market, Nationwide, had earlier sounded its worst forecast of a 30% decline.

It’s worth reminding that interest rates have been raised by the Bank of England from 0.1% to the level of 3.5% over the year. The delivered increases were aimed at taming record-high inflation. As it was forecasted by Bloomberg economists, the policy rate will reach its peak in May at 4.25%.

Company MarketCheese
Period: 14.07.2025 Expectation: 945 pips
Delayed tariff implementation may push silver to $35.650
Yesterday at 11:10 AM 40
Period: 18.07.2025 Expectation: 1400 pips
Weak dollar may drive S&P 500 to 6,300
Yesterday at 07:34 AM 39
Brent sell
Period: 11.07.2025 Expectation: 400 pips
Brent falls ahead of OPEC+ decisions
04 July 2025 63
Period: 18.07.2025 Expectation: 900 pips
AUDCAD is likely to keep pulling back from its monthly high
04 July 2025 49
Period: 10.07.2025 Expectation: 1200 pips
Selling USDJPY during rebound with 142.430 target
03 July 2025 64
Period: 11.07.2025 Expectation: 220 pips
Heatwaves across Europe and US support gas price recovery from recent lows
03 July 2025 246
Go to forecasts