Buy-to-let mortgage market slows following interest rate rise

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The Royal Institution of Chartered Surveyors (Rics) has noted a slowing in the buy-to-let mortgage market following the Bank of Englands interest rate rise.

Figures from the Rics Lettings Survey showed that six per cent more chartered surveyors reported increased, rather than decreased letting activity.

This represents a significant slowdown in the industry, according to Rics, as the previous quarter saw a 13 per cent majority for increased activity.

Jeremy Leaf, spokesperson for Rics, said: "With profit margins potentially reduced, affordability conditions could bite hard into investors pockets."

"But investors continue to express a high level of confidence in the longer-term buy-to-let market as selling activity remains low," he noted.

Mr Leaf added that the market is strong and that persistently low interest rates may see more first-time buyers attempting to mount the property ladder.

Rics said that while it is impossible to rule out a further interest rate rise in coming months, large Christmas bonuses are expected to support strong spending on housing over the festive season.

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