Despite inflation targets being met at 2%, and the European Central Bank lowering their interest rates, disappointingly the bank of England still held off a rate reduction this month. The bank held interest rates at 5.25% for the seventh time in a row and to a 16-year high. 

This will not be good news for borrowers, including both homeowners and landlords, and subsequently tenants. To compensate for substantial rises in mortgage payments, landlords have had no choice but to increase rents. Despite some tenant groups branding landlords "greedy", the majority have actually not increased rents for sitting tenants by the same amount as mortgages have gone up. Many landlords are now paying three times what they were two years ago but have not passed this on to their tenants. However, rents are continuing to rise, and may still do so even after a small cut, which is expected by August. A quarter or half a percent cut will not make up for the five percent increase since 2021. 

The high interest rates and unfair tax regime have driven many landlords out of the market, reducing supply. We therefore foresee that rents will continue to rise, all be it possibly at a lower rate than over teh apst two years, especially if there is a decent interest rate cut this summer. 

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