Cloudy picture for rental values at the end of 2011

February 28, 2012

Landlords Insurance

A report from the BBC* indicates that for the first time in almost a year, average rental prices fell nationally towards the end of last year.

It is not easy to see what, if anything, can be read into this but it does seemingly fly in the face of some predictions earlier in the year that we would see an ongoing uninterrupted rise in rental prices.

Of course, it is always dangerous to try and draw too many conclusions based upon only one or two months’ data but it is nevertheless interesting.

At the time of writing, proposals are going through Parliament which will restrict the total amount of social benefits payable to a family to a level roughly corresponding to the average national salary. Some are predicting that this will have a tendency to push down rental prices, particularly in areas where prices are currently high, however, other people are predicting that this will have no significant effect.

Against this backdrop, there continues to be ongoing debate about the economy and seemingly never-ending euro zone crisis.

Seasoned veteran landlords will probably smile at all this speculation because they have probably seen and heard it all before, however, even some of that group are admitting to seeing 2012 as being an unusually unpredictable year for the letting marketplace.

Rarely have there been so many potentially conflicting indicators.  Things such as the 2012 Olympics and the ongoing apparent reluctance of buyers to enter the housing marketplace but to rent instead, appear to bode well for landlords and their businesses – at least in some areas of the country.

By contrast, the ongoing economic problems, downward pressure on incomes and reducing social benefits structures, may be extremely concerning for those same landlords.

If you are looking to hedge your bets about the year ahead and occupancy figures, it may pay to quickly swot up on the unoccupied property insurance quote.

You may earnestly hope that it proves to be academic and unnecessary, however, being prepared and informed won’t do you any harm and to the contrary, it may save you time and effort later on should the market take a turn for the worse.

 

*Source :

http://www.bbc.co.uk/news/business-16199840

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