The Bank of England’s signal that interest rates will stay at a historic low has cheered real estate investors in the UK.
The number of approved buy-to-let mortgages rose by 5 per cent this summer, compared with 2018, reversing an earlier trend caused by tax changes.
With mortgage rates remaining highly competitive, high employment across the country and improved earnings, conditions are good for property investors, according to industry experts. “There are bargains to be had and some are making the most of these now,” said one. “Investors are still keen on bricks and mortar where they can find the right opportunity.”
Overall growth in the UK economy is subdued, though it is now unlikely to fall into recession, according to economic forecasters. The Bank of England predicts that growth will be just 0.2 per cent in the third quarter of 2019, although consumer spending is robust and families’ decisions to take their vacations in Britain has boosted leisure related businesses.
The Bank argued in its September bulletin that low global growth, political uncertainty and international trade conflicts mean that “UK base rates will remain lower for longer”.