An expert in the landlord insurance industry recently discussed the current market conditions in an interview with LandlordExpert.co.uk.
Barry Shereston of
Arthur Savage Insurance talked about many issues including the need for interest rate cuts. "Whilst interest rate cuts may be a factor in lowering other costs for landlords, it is the cost of mortgages and loans that have a direct impact. Other than tracker type mortgages, only pressure from Government will cause the banks to increase lending and offer lower rates across the board" Shereston said.
With the current market conditions landlords are most likely worried about the expenses they may deal with if a tenent defaults on their payments. "A single payment default would likely have a minimal cost, but persistent defaulters and evictions especially with large tenants can cost significant time and money ..." Shereston said.
An issue on the minds of all property owners and investors is when stability will return to the market. There are many factors involved to take into consideration but some advantages do present themselves. Shereston had this to say."... it is perhaps more difficult to imagine a run on house prices such as we have experienced in the last few years - but the market may be more stable. Having said that, lower house prices present an opportunity for cash buyers to increase their portfolio - albeit more selectively going forward."
To protect your investment you should be sure to invest in good Landlord Insurance.The most frequent claims are "... for storm and flood damage." says Shereston. To avoid any problems in the future Shereston says"It should be remembered that it's a requirement of all insurance policies for the property being covered to be well maintained. And moreover, in the event of a claim, the validity of cover can depend on it."
To read the full interview visit
http://www.landlordexpert.co.uk/index.php?news=2319 or get more
information on Landlord Insurance in the UK.
Author RSS Views:
Print this article
Ask about this article