A leading UK property expert has said that last week’s Bank of England interest rate cut will provide a much-needed boost to housing affordability, but warns that a shortage of available homes continues to constrain the market.
Mish Liyanage, CEO of The Mistoria Group, shared his expert view following the Bank’s decision to reduce interest rates for the first time in over a year.
“With mortgage rates easing, we can expect a significant improvement in affordability — particularly for first-time buyers who have been priced out by previous rate rises,” said Mr Liyanage. “However, without more homes entering the market, supply constraints will continue to drive upward pressure on prices.”
How the Interest Rate Cut Affects Buyers, Landlords & Investors
Lower interest rates typically boost buyer confidence and stimulate demand, especially in Manchester, Salford, and Liverpool — three cities long recognised for strong capital appreciation and high rental yields.
“Cheaper borrowing costs can relieve mortgage stress for buyers and investors,” Mr Liyanage added. “But the UK housing market still faces a major obstacle: an ongoing lack of supply.”
According to the latest government data, just 124,000 new homes were built in England in 2024 — almost 30% below the target of 300,000 — pushing both house prices and rental rates higher.
Opportunities for Landlords and Property Investors
Falling interest rates are likely to improve profitability for landlords, especially those operating through limited companies, which now make up over 70% of new buy-to-let (BTL) purchases.
“A limited company structure allows landlords to retain full mortgage interest relief and expand portfolios more efficiently,” explained Mr Liyanage. “But this optimism must be balanced with awareness of the upcoming Renters’ Rights Bill, which will introduce major regulatory changes.”
Expected to come into effect in 2025, the Renters’ Rights Bill will deliver sweeping reforms to the private rented sector — including periodic tenancies, a national landlord register, tighter eviction criteria, and enhanced tenant protections.
“Landlords must prepare for increased compliance and reporting obligations, even as financing conditions improve,” Mr Liyanage cautioned.
Regional Differences Across the UK Property Market
Despite renewed optimism, market growth will remain uneven.
“Demand is rebounding fastest in northern cities and university hubs, while areas with weaker employment or ageing housing stock continue to lag,” said Mr Liyanage. “Astute investors are targeting high-growth locations supported by infrastructure investment, student demand, and vibrant local economies — where rental yields of 7–8% are common.”
Mish Liyanage’s Five Expert Tips for Navigating the Market After an Interest Rate Cut
- Act Fast – Take advantage of lower borrowing costs early, before rising demand drives prices up. Historically, post-cut periods see quicker transactions and stronger competition.
- Work With Local Experts – Partner with experienced estate agents who know regional markets and can access off-market opportunities. Local insight reduces risk and improves yield potential.
- Prioritise Compliance – Stay ahead of Renters’ Rights Bill changes and HMO regulations to avoid fines, rent repayment orders, or licence loss.
- Explore a Limited Company Setup – Incorporating your property business can deliver tax efficiency, full mortgage interest deductions, and simpler portfolio expansion.
- Monitor Market Data – Track government housing statistics, planning approvals, and local employment trends to identify high-demand, low-supply areas that promise long-term capital growth.
The Bottom Line
The Bank of England’s interest rate cut is a positive step for homebuyers, landlords, and investors, offering relief on mortgage costs and improved affordability.
However, the UK’s housing supply shortage remains the biggest challenge — and a key factor sustaining price and rent growth.
As activity continues to build, The Mistoria Group reports particularly strong interest across the North West, where robust rental yields and capital growth opportunities remain among the best in the country.
Get Expert Property Investment Advice
For tailored guidance on buy-to-let strategy, property compliance, or portfolio growth, contact The Mistoria Group today.
📞 0800 500 3015 | 📧 info@mistoriagroup.com
🌐 Visit mistoriagroup.com for expert insights and the latest UK property market news.
