Bank of England’s surprise move to pump £75 billion into the UK economy could work in favour of landlords, according to one senior mortgage expert.
David Whittaker, managing director of Mortgages For Business, said that the prospect of the cost of living becoming ever more expensive will force more people into the private rental sector.
Sir Mervyn King has insisted that the Bank of England’s move is the right thing to do for the economy as the country faces “the most serious financial crisis” ever seen.
But Whittaker believes that King’s view will offer “little comfort” for those trying to put money aside and save “for the weighty deposits needed to secure their first mortgage”.
He added: “The number of people reliant on the private rental sector will spiral as a result and professional landlords and property investors will continue to benefit from the ongoing economic environment. Rates remain low and property prices are stagnating at best and this has given landlords the perfect opportunity to capitalise on high rental demand.”
