As well as announcing its interest rate decision, the Bank of England released its inflation report.
According to the report, inflation should fall much quicker this year. Currently, the Bank of England predicts that inflation will drop to 2% between April and June.
But there is still a question mark on when that will start affecting interest rates.
The governor of the Bank of England, Andrew Bailey, says: “We need to see more evidence that inflation is set to fall all the way to the 2% target and stay there before we can lower interest rates.”
So, is buy-to-let a good investment even when interest rates are high?
Well, mortgage lenders have reacted to the stabilising market by cutting rates, indicating a cautious optimism among those who watch the industry closely. With rental growth of 6% expected this year, we may see more buy-to-let investors take a chance on the market in search of lucrative gross rental yields. This could be particularly true in areas like the North West, where the buy-to-let sector is forecast to enjoy 9.2% returns over the next 12 months, according to the Savills Cross-Sector UK Forecasts.
For more buy-to-let insights in the UK, read some of our area guides, including:
