Rental property insurance holders could find their interests are better served by continuing to generate income from their accommodation via lettings.

That’s because it’s believed investors can no longer simply purchase a property, and sit back to watch it rise in value, according to IPINGlobal.com.

Researcher at IPINGlobal.com, Peter Mindenhall thinks short-term investments in property have “never really been sustainable” due to the variations between localised markets.

He added that some investors with high loan-to-value mortgages will currently be fearful of experiencing negative equity.

But meanwhile, other landlords insurance holders will feel more comfortable about their situation.

He explains that “long-term investors with low loan-to-value mortgages or that have paid cash are likely to be less concerned, [because] even if and when interest rates rise they will still have a reasonable comfort zone.”

Figures from Halifax show that average house prices increased slightly in May, but have fallen by 1.2 per cent in the last three months - and by 4.2 per cent over the past year.
In other news, it’s been said that becoming a landlords insurance holder on the UK’s housing market should not be viable for everyone, according to MyMortgageDirect.

Catherine Hearnden, director at the company, says: “As far as making it affordable for everyone, not everyone is in that position.
“Not everyone should be able to afford to own their own home because it is not right for everyone.”

Her comments come in response to comments by the Citizens Advice this week that the number of under-25s seeking help with housing issues has risen by 14 per cent - compared with 2009/10.

Ms Hearnden added that many young people in the UK need to stop considering the prospect of owning their own property as a right, when trying to build the resources needed when attempting to be a landlord contents insurance holder.

She says that on the continent, not everybody insists in being a landlord insurance holder.
“In many countries in Europe and around the world, no-one sees it as a right; they see it as an aspiration.”

And for those still hoping to make a foray into the world of being a rent guarantee insurance holder, Dr Dennis Coote, thinks investing in a new build could work out – as long as the buyer has assurances work and regulating is complete.
He says: “I take the view always that I would never buy a property until it’s finished and I can see what its like.”