With the base rate now at an all-time low of 1.5% and retail banks being urged to pass on the rate cuts, landlords with tracker mortgages are likely to see their monthly payments falling according to Edinburgh property management specialists Cullen Property.
Operations Director Steve Coyle explains: "As the banks are lowering their standard variable rates and tracker mortgages start reflecting the latest cuts, landlords will find the rental return on their properties improve noticeably.
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"We expect our landlord clients to be able to offer their tenants new leases at either their current rates or with minimal increases as they would prefer to retain good current tenants at this time."
Mr Coyle said tenants are likely to extend a lease for a property they are happy with - especially if the rent remains stable.
"We have also noticed that a number of our clients are now looking to significantly upgrade their properties to attract new tenants more easily. Lower mortgage payments will help them re-invest any freed up cash into these improvements," he said.
Cullen Property currently manages approximately 300 properties across Edinburgh. The company offers a full management service, including property sourcing, lettings and refurbishment.
(GK/JM)
