Low interest rates will continue to make finance affordable for landlords, according to one property expert.

The Bank of England’s decision to keep interest rates at 0.5 per cent will mean that repayments on buy-to-let will remain low.

Landlords are reportedly more positive about the economic climate, despite the slowing market.

A recent survey from Upad.com found that six in ten landlords polled planned to expand their portfolios in the coming year, because of optimism about the future.

Commenting on prospects for landlords, Property Hawk’s editor Chris Horne said: “The finance market and the mortgage markets have recovered from the lows of last year, so there are more mortgage products.

“It looks like low interest rates are here to stay this year and probably early next year, so from that point of view finance is stable and relatively affordable.”

He added that rental yields were expected to get higher over the coming year, signalling further good news for landlords who saw values go down during the recession.

Posted by Luella Ravelin

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