The Impact of Rising Interest Rates on Landlords and Renters

💼Increased interest rates and reduced tax benefits have led to landlords selling their properties.

📈The number of properties being sold by landlords has been increasing in recent years.

🏠The decrease in rental properties has resulted in higher rents, especially for properties priced below £800/month.

📉Landlords are facing challenges due to changes in tax relief and impending regulations in the rental market.

💰Renters, especially younger generations, are struggling to save money and afford their own homes due to increasing rents.

Why are landlords selling their properties?

—Landlords are selling their properties due to increased interest rates, reduced tax benefits, and upcoming regulations that make being a landlord less favorable.

How does the selling of rental properties affect renters?

—The selling of rental properties reduces the availability of properties, leading to higher rents, especially for properties priced below £800/month.

Why are rents increasing?

—The decrease in rental properties due to landlords selling off their properties has resulted in a higher demand for the remaining properties, causing landlords to increase rents.

What changes have affected landlords' profitability?

—Changes in tax relief and upcoming regulations, such as banning section 21 notices, have reduced landlords' profitability and made the rental market less favorable for them.

How does the rental market impact younger generations?

—Increasing rents make it harder for younger generations to save money and afford their own homes, worsening the rental affordability issue.

00:00The cost of living crisis and high inflation have led to increased interest rates.

02:48Landlords are selling their properties due to increased interest rates and reduced tax benefits.

05:39The selling of rental properties has led to fewer rental properties available and higher rents.

06:57Changes in tax relief and upcoming regulations have affected landlords' profitability.

08:00Rising rents make it harder for younger generations to save money and afford their own homes.