Bank of England raises interest rates by 0.25 per cent

The decision to increase rates from 0.5% to 0.75% means that rates are above half of 1% for the first time since March 2009.

Of course 0.75 per cent is still an historically low interest rate and landlords should have no need to panic just yet.

Interest rates have been, and remain, incredibly low compared with recent history, leading to concerns that the sustained period of very affordable finance may have bred complacency amongst some in the landlord community.

According to National Landlord Association (NLA) research*, the average value of buy to let mortgages held by a private landlord in the UK is in the region of £464,000. This means that an additional quarter of one per cent will cost an additional £1,160 per annum.

Looking at individual rental property investments, typical borrowing equates to around £77,000. For a mortgage of this size, a 0.25 per cent increase equates to additional costs of around £16 per month.