As the financial sector started to dissect the statement from the Bank of England’s Monetary Policy Committee (MPC) after its decision to hold the rate at 0.5% for yet another month, landlords with an interest in taking out yet more landlord insurance as they expand their portfolios must have found it hard to suppress a cheer.
The bleak statement accompanying the announcement of no change was based on the disappointing growth figures over the last six months with the MPC admitting the fragility of the nation’s economy could not stand a change in the record low interest rate.
The chances of any change in the rate over the summer now seems to be disappearing fast, which is good news for property investors looking to take advantage of the low interest rates and the stagnation in the housing market. The decision should mean residential landlords will have plenty of loan providers offering them ammunition to go out and negotiate good prices with homeowners desperate to sell their property.
The good prospects for those willing to take a chance in the market was summed up by Angela McGowan, a chief economist with the Northern Bank, who described the MPC’s decision thus: “This latest announcement is once again bad news for savers but good news for borrowers. And with the recent parade of gloomy economic data coming from the UK, it is now looking increasingly likely that the Bank of England will be forced to keep the base rate at this level for the entire year. This historically low interest rate level is vital for keeping the UK economy’s head above the water when there are harsh austerity cuts all around.”
It may not sound good news for the country but every cloud has a silver lining and for those in the letting sector the lining seems to be getting bigger and bigger.