Landlords to enjoy rise in property values
While rents have been reaching record levels, the rest of the property market has been suffering a rollercoaster ride as landlords with buy to let insurance see the value of their assets rise and fall.
But it appears the recent slide in property values could be coming to an end as a significant rise of up to 5% is expected through the rest of 2011 by one expert observer.
The latest Assetz House Price Watch has seen UK house prices record steady growth in the first quarter of 2011 with the average price now £197,153 – a rise of 0.67% since the start of the year.
Assetz House Price Watch is an overview of the data supplied by the five main house prices indices: Acadametrics HPI, Rightmove, Nationwide, Halifax and the CLG.
It has found that all annualised average rates of growth indicate further market stability, with the three month average rate of growth for Q1 2011 now 2.98%.
Assetz Chief Executive Stuart Law predicts even a rise in interest rates will not dampen the market.
He said: “The slight increase in mortgage repayments as a result will have a negligible impact on homeowners and prospective buyers who will continue to benefit from historic low rates. Interest rates are unlikely to exceed 1% this year in order to compensate for recent tax increases and spending cuts.
“These low rates will continue to support house prices and consequently, unlike many commentators, we still expect values to increase by around 5% this year.”
Great news for landlords keeping an eye on the value of their property.
Meanwhile, landlords looking to buy more might consider this an indicator that they should move quickly if they are to take advantage of low prices.
Whatever your situation as a landlord, you should make sure that you have the most appropriate cover for your needs in place on your property.
An inquiry about cheap landlords insurance could put you at ease and help your pocket.