Rate rise will add pressure to rental market

According to the property industry, the nearly certain interest rate rise next week will delay the construction cycle and add to the pressure on rents. While a rate rise would add to mortgage repayments, it would also impact on the already stretched rental market. Graham Joyce, deputy president of the Real Estate Institute of Australia said that vacancy levels are very low in capital cities, around 2 per cent, and a rate rise will only make it tougher for renters.