Surging mortgage rates could see record rents growing further as affected landlords look to cover the rising cost of borrowing.

Liz Truss and Kwasi Kwarteng’s mini-budget has sent the UK economy into freefall and the resulting mortgage rate hike means affected landlords will likely pass on rent rises to tenants, a landlord lobby group has warned.

Thousands of mortgage products have been withdrawn from the market amid a warning from traders that rates could reach 6 per cent next year.

That would mean the average first-time buyer paying a 10 per cent deposit would pay a monthly payment of £1,302 – 60 per cent higher than those getting on the ladder at the start of 2022, according to Rightmove analysis.

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