Low interest rates good news for UK buy-to-let investors

Low interest rates will act as a boost to the UK private rental sector, with both landlords and tenants benefiting financially, it has been claimed.

According to Malcolm Harrison, a private rental sector expert, investors with buy-to-let mortgages will be able to take advantage of the cheap rates to pay off their mortgages.

"Landlords are able to let their properties, they don't have as many outgoings so they are in a better position," he explained.

"If interest rates remain low, and if more buy-to-let products come on to the market, it is going to be good for the private rental sector."

Furthermore, Mr Harrison claims that there is a growing demand for rental property.

The expert's comments come after the Council of Mortgage Lenders released new statistics which demonstrate that the low interest rates are contributing to an improvement in buy-to-let arrears.

In addition, the council reported that buy-to-let activity in the first three months of this year settled back to former levels.

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