Rental property insurance: dependant?
Rental property insurance holders could be set to enjoy an even more buoyant market when it comes to British tenants in 2011.
It’s been said this week that many young people unable to access the housing market will be “very dependent” on the rental sector in the coming months.
Independent property industry expert, Malcolm Harrison, thinks the availability of rental stock will remain “very tight” until access to mortgage finance increases.
Mr Harrison says: “There is a shortage of decent housing in many areas and you can’t get a mortgage, so quite a lot of people are going to be very dependent on buy-to-let investors.”
The comments follow new figures from a national property service.
And this data shows that 86 per cent of landlords insurance holders plan to maintain or expand their portfolios over the coming year.
68 per cent meanwhile think tenant demand will grow over the next 12 months.
In other news, it seems buy to let insurance holders in the north of England are enjoying some buoyancy once again.
Manchester lettings agent Philip James has assessed the market in the region and thinks one of the greatest property bounce backs in recent history has occurred place in the return of the buy to let landlord.
In quarter one rental figures rose by a factor of almost 8 per cent, as a deluge of landlord insurance holders come back to the marketplace in the north.
The so-called ‘mini-boom’ is thought to have originated due to low interest rates, restricted borrowing and the sustained lack of access for the first-time buyer.
Philip James owner Philip Nolan remarks: “Landlords are having a field day in the north of England. In the first quarter of 2011 one of our Manchester branches witnessed two-thirds of its entire rental property stock rise sharply in value without a single property dropping. This is a record for Manchester and we expect the trend to continue throughout 2011 and into 2012.”
However, its being said elsewhere that unlicensed agents could pose a real threat to public rented sector.
Operations Manager for ARLA, Ian Potter says: “As Britain is apparently on the verge of becoming a ‘nation of renters’, renting is now a necessary choice for many people who cannot afford the deposit needed to buy their own home.”
He thinks the government must “enforcement of existing requirements to protect tenants with action being taken by local authorities to ensure a landlord provides a safe home.