There are several story lines currently dominating the UK housing market and they are all related in some form to the increase in the national base rate which controls interest rates. House price average has slowed and is expected to slow even more in the coming months. The buy to let market has grown and continues to grow for those who can still take advantage of attractive lending products with low rates. And the remortgage market is still in high gear since the announcement of the increase in base rate would likely take place sooner rather than later.

The buy to let market is especially active. There is a boom currently taking place which many banks are reaping the rewards from. Overall, the majority of the lending growth is taking place in the buy to let market where 80% of the new growth is originating from.

Rental demand is still off the charts as more and more people attempting to gain access to the property ladder are falling short. House prices are out of reach, income levels are not keeping pace with price growth, and savers are at the mercy of a low interest rate. Landlords however are benefitting from a market that is on fire as they scoop up more rental property for lease.

Although the buy to let market is considered a high risk market overall relative to the big picture of the financial services sector, landlords continue the march to owning more property for lease. If prices fall a domino effect could begin starting with landlords. They are quite likely to begin a selling trend which could be damaging.