Interest rates expected to stay stable
Buy-to-let landlords may be encouraged to hear predictions of interest rates being kept on hold as this will mean mortgage repayments will stay affordable.
According to mortgage advisory firm Alexander Hall, the Bank of England is not likely to increase the base rate in the short term.
The current rate is 0.5 per cent, which is a historic low, and was implemented in March 2009 in response to difficult economic conditions.
In recent months, however, a number of commentators have said that there is a case for a rise in the rate due to the threat of inflation.
But Andy Pratt, chief operating officer of Alexander Hall, noted that some believe inflation will "jump down" naturally.
"There is a lot of press comment out there at the moment – from the Bank of England and others – that inflation is going to quite naturally jump down, but we have got to see it happen," he added.
Mr Pratt said that if interest rates are kept at a low level people are going to feel "less troubled and more confident" about their mortgage situations.
"The reality has got to come through, but if that does happen, then I would have thought that we are very unlikely to see a rate change for quite a long time," he explained.
"We could be potentially into a situation of the record-low base rates that Japan had for a long time. It has to come through in reality and we have to see that, otherwise the rate will have to go up to protect inflation."
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