According to new research released by Halifax, based on their own national average property price data,
on average, our landlord insurance customers who purchased property around the turn of the century have seen their property investment increase in value by 91% over the past ten years,
The average price of a residential property in the country increased from around £86,000 in the year 2000 to just over £165,000 by the beginning of 2011. It is important to remember that the actual rebuilding cost of the property is not directly associated with the market values so landlords have not necessarily had to increase their rebuilding costs for landlord insurance by 91% during this period.
Anyone, not just landlords, that have kept an eye on the housing market know that this cycle has not be a continuous upwards trend and until 2007 the average price had risen to a high of 132% increase however this has now fallen back with 2010 ending roughly where the market was around the end of 2005.
Despite this recent fall, landlords that purchased property at the beginning of this century will still have a healthy capital increase in their portfolio.
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