The Bank of England base rate drop is good news for UK property investors
The fall in borrowing costs that will follow the Bank of England base rate drop is good news for UK property investors where interest charges are a major expense, say leading audit, tax and business advisory firm, Blick Rothenberg.
Heather Powell, head of property at the firm, said: “The Bank of England base rate has dropped to 4.25%, which is good news for all borrowers, but especially property investors. They have been dealing with a commercial property market with specific issues, including occupancy rates, demands to improve properties, and broader UK economic factors impacting the financial success of tenants.”
She added: “The Bank of England base rate impacts the rate of interest paid for borrowing money from banks. Borrowing costs are a critical element of any cash flow forecasts for a property investor and a reduction in these costs releases funds to be invested in improvements, including energy efficiency.”
Heather said: “Energy efficiency improvements are critical to the reduction of carbon emissions in the UK but the cost of implementing them can be high. Lower borrowing costs will enable more landlords to invest in improvements, benefiting landlords, tenants and the UK as a whole.”
She added: “Further base rate drops are expected this year. It is to be hoped that this will encourage further investment.”