January, 2010
Will winter weather dent the buy to let property market?
Many buy to let investors will have been deterred from viewing property because of the weather over Christmas and the New Year. Will this have affected the recovery in the let property market that some agents were noticing at the end of last year?
London Agent Marsh and Parsons reported in December that a shift in the market had taken place in the second half of 2009. They said that after 18 months of falling rents the market had stabilised and in some cases rents were actually rising. They put this down to a shortage of let property on the market and an increase in demand in the summer and autumn.
Marsh and Parsons said that some properties that they let in 2008 were being re-let in 2009 for 15-20% higher. They cautioned that prices in Kensington and Chelsea had fallen sharply when the market turned down so property owners who had entered the market at the wrong time were still not out of the woods. Marsh and Parsons are optimistic for London landlords and prospective landlords.
What do you think? Is the picture outside London very different? Do you feel that the recent bad weather will be a threat or an opportunity for people seeking to buy property to let out?
If you are thinking of buying property to let out you should purchase buy to let insurance to protect your investment. Buy to let insurance is specially designed to insure your property while rented out to paying occupiers which most standard home policies do not.
Accidental landlords
In the 1990s many people had the idea that buying a second home could give them holidays rent free with the prospect of a healthy capital gain. Estate Agents Savills reckon that the number of second homes climbed by 40,000 in the ten years to 2006. Now that the boom has ended some owners are looking to their properties to generate income, at least to cover the maintenance and basic outgoings. A website called holidaylettings.co.uk had 77% more English properties on it books in December than in January 2008. The question is, will you be able to find enough holidaymakers? It rather depends on the location, quality and rental price of your property. In some areas the market seems oversupplied with holiday lets.
If you wish to sell your holiday home you will not be encouraged by a recent comment from Knight Frank who say that demand for second homes has dropped in the last 12 to 18 months. Offering the house on a longer term tenancy may be attractive because of the steady income stream, although of course it will no longer be available for family holidays. At least the main bills will be covered.
Be sure to check that your holiday home insurance policy covers you as the landlord of a long term tenancy.
If you are thinking of renting your property and have a need for landlord insurance call click4quote.com for specialist cover.
Bad weather brings worries for owners of unoccupied property
A spell of bad weather is a worrying time for owners of empty property. Will their insurance cover the cost of storm or flood damage, or the consequences of a flood if frozen pipes burst when they thaw out?
Some properties are unoccupied because they are holiday homes; others have been bought for renovation or to let out. Whatever the use of the property the first thing to do is to check your policy wording. There will usually be a requirement to contact the insurer if the property will be regularly unoccupied for longer periods, perhaps for thirty days or so. This gives the insurer the opportunity to decide what precautions they wish you to take for cover to continue.
If the property is regularly left unoccupied for shorter periods the policy may well contain clauses requiring precautions such as regular inspections, blocking up letter boxes and draining the water system or leaving the central heating on a low setting.
Make sure you are covered by a company that understands the needs of the owner of unoccupied property and you have followed all their advice.
For unoccupied property insurance contact click4quote for a quick quotation or go online and recieve a quote instantly – even for property of non-standard construction!