9% on top pf 6% is nearly 14.5% in only two months .
If we assume that a lot of the BTL brigade were on IO they have dropped from about 6.5% to maybe 5% with the 3 ECB cuts ( they did not get the full 2.25%) and that is a drop of 22.5% . Therefore rents in that scenario have not dropped as much as interest rates and the landlords margins …if the landlord has no long voids…has widened .
The cost covering argument is quite persuasive for me .
Of course the IO period is only 10 years typically and these guys are 2-3 years into that with repayment looming larger.