A leading property expert says last week’s Bank of England interest rate cut will give the housing market a welcome boost in affordability — but warns that limited supply remains a key challenge.
Mish Liyanage, CEO of The Mistoria Group, shared his insights following the Bank’s decision to lower rates for the first time in over a year.
“With mortgage rates easing, we can expect a noticeable improvement in affordability, particularly for first-time buyers who have been priced out by recent rate hikes,” said Mr Liyanage. “However, housing supply remains critically low. Without more new homes entering the market, upward price pressure will continue.”
How the Rate Cut Impacts Buyers, Landlords & Investors
According to Mr Liyanage, reduced interest rates typically strengthen market confidence and fuel demand in key cities such as Manchester, Salford, and Liverpool – areas already recognised for strong capital growth and rental yield potential.
“Lower borrowing costs can certainly ease mortgage stress,” he said. “But the UK housing market still faces a major obstacle: a shortage of homes.”
Recent government figures reveal that just 124,000 new homes were completed in England in 2024 – almost 30% below the annual target of 300,000 – driving continued upward pressure on both prices and rents.
Opportunities for Landlords and Investors
Landlords could see improved profitability thanks to cheaper borrowing, particularly those investing through limited companies – which now account for over 70% of new buy-to-let purchases.
“Operating via a limited company structure enables landlords to retain full mortgage interest relief and expand portfolios more efficiently,” said Mr Liyanage. “However, this optimism is balanced by the need to prepare for stricter Renters’ Rights Bill regulations.”
The Renters’ Rights Bill, expected to come into force in 2025, will bring sweeping reforms – including periodic tenancies, a national landlord register, tighter eviction rules, and enhanced tenant protections.
“Landlords must get ready for increased compliance obligations, even as financing conditions improve,” he warned.
Regional Market Differences
Despite the positive momentum, Mr Liyanage cautioned that not all areas will experience growth equally.
“Demand is recovering fastest in northern cities and university towns, while regions with weaker employment or ageing housing stock are lagging behind. Savvy investors are targeting high-growth areas with strong student populations, new infrastructure, and robust local economies – where rental yields of 7–8% are common,” he added.
Mish Liyanage’s Five Tips for Navigating the Post-Rate-Cut Market
- Act Quickly – Capitalise on the window immediately after a rate cut, before demand pushes prices higher. Historically, post-cut periods see increased competition and faster transactions.
- Partner with a Local Expert – Work with experienced local estate agents who understand market trends and have access to off-market deals. This local knowledge helps secure stronger returns and minimise void periods.
- Stay Compliant – Avoid fines and licence issues by meeting all safety, HMO, and tenancy requirements early – especially with new Renters’ Rights Bill obligations on the horizon.
- Consider a Limited Company Setup – For landlords, this structure allows full mortgage interest deduction, improves post-tax returns, and simplifies portfolio growth – key advantages over private ownership.
- Track Market Data Closely – Keep an eye on government housing statistics, planning approvals, and rental yield trends. Target undersupplied areas with strong employment growth for the best long-term investment prospects.
The Bottom Line
While the interest rate cut provides a welcome boost for UK property buyers and investors, it doesn’t solve the underlying issue of supply shortages. As affordability improves, demand is expected to rise — especially across the North West, where The Mistoria Group continues to see robust activity from both homebuyers and investors.
For professional advice on property investment, compliance, or portfolio growth, contact The Mistoria Group.
📞 0800 500 3015 | 📧 info@mistoriagroup.com
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