The first base rate rise in a decade could put increasing pressure on both mortgage repayments and rents. The increase of 0.25 per cent will raise monthly mortgage repayments by an average of £13 per £100,000 borrowed. However, in the rental sector, the interest rate rises could affect the already disenchanted Buy to Let landlords – coming after changes to mortgage tax relief, tighter lending criteria and stamp duty increases – and make renting property simply unviable. Fears that a reduction in the availability of rental property, as more landlords sell-up, could cause a dearth of rental properties and a subsequent increase in rents.

John Goodall, CEO and founder of Landbay said: “In and of itself, a quarter of a percent is not going to have a huge impact on rental prices overnight, but symbolically it has the power to galvanise landlords to price-in many of the tax and regulatory changes that have been building up for some time.”