3min chapter

Crash Course With Michael Walker cover image

Why Renting In London Is Hell Right Now

Crash Course With Michael Walker

CHAPTER

Buy to Let Landlords - What's Next for Renters?

Interest rates are soaring thanks to war in Ukraine and a disastrous mini-budget. One effect of that could be to bring down house prices, but it could also raise the mortgage costs of existing buy to let landlords. We're talking about interest rates going to something like 4.5%, 5% by next summer is the best guess of investors and economists. That's just where interest rates were in 2006, 2007. So we return to more normal levels. The difference, of course, is that house prices are much, much higher than they were in 2006 or 2007. Although the level of interest rates isn't expected to be especially high historically, the burden of servicing that debt is much higher than

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