Money worries should concern rental sector
There is no doubt that 2012 will be a tough year for most people, including landlords with buy to let insurance
Landlords have prospered well over the last couple of years, thanks in the main to the struggling UK economy, but all that could be about to change.
UK banking has never been the same since the credit crunch and, as such, many institutions are reluctant to lend money.
This general reticence has stifled the housing market by stopping many people from being able to purchase their own home.
As a result, record numbers have poured into the rental sector as a solution for their accommodation issues.
The resulting demand has pushed up rents to ever dizzying heights – but now it seems that the economy which helped create the situation could be reaching the point of no return.
Millions of people across the UK are starting 2012 with financial worries. Some may have lost their jobs, others are concerned about their employment – and everyone is being affected by inflation.
The next 12 months could be testing times for landlords with an increasing likelihood of more people defaulting on their rents.
Landlords should therefore make sure they prepare for the worst by taking out rent guarantee insurance.