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%.