The Bank of England has pushed interest rates up for the fourth time in under a year - by 0.25% to 5.75%.
The rise had been predicted by economists after Bank governor Mervyn King said inflation was a concern.
In addition, it emerged a fortnight ago that four of the nine members of the Bank's Monetary Policy Committee voted for a rise last month – when the rate stayed at 5.5%.
The rise in interest rates from 5.5% to 5.75% would put an extra £16 a month on an average £100,000 repayment mortgage, but it could be good news for savers, who should receive more for their investments.
Despite the pressure on the housing market, property investment portfolio managers Young Group says the London buy-to-let property market remains healthy providing investors have a “coherent strategy”.
Firm chief executive Neil Young says: “Interest rate rises affect the cost of borrowing across the board.
“They have an impact on all investment asset classes, from fine wines through to bonds and commodities.
“Property is no different, and we advise clients to take a five to ten-year view on their buy-to-let investment and use appropriate levels of gearing, whilst factoring in contingency to accommodate interest rate changes.”
There is some dispute about the strength of the housing market.
While the Halifax revealed on Wednesday that UK house prices rose 0.4% in June, Land Registry figures showed that the price of flats, as opposed to houses, in most parts of the England and Wales were now falling slightly.
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