Positive Property Price Increases Announced By ONS

Tuesday, June 2, 2015
Landlords Can Still Do More For Their Tenants Financial Health As Property Prices Continue To Increase

Landlords Can Still Do More For Their Tenants Financial Health As Property Prices Continue To Increase

Landlords Can Still Do More For Their Tenants Financial Health
As Property Prices Continue To Increase

The latest official property price data released by the Office for National Statistics (ONS) shows that UK property prices have shown an annual increase of 9.6% since the same period last year and property prices were also 7.4% on last month.

This is great news for property investors and portfolio landlords who are aiming for some degree of capital appreciation on their property assets. The downside for potential property buyers is that they will have to find even more cash to fund deposits for a property purchase, however, this could also mean that many future property buyers may have to stay in privately rented accommodation longer, providing even more good news for landlords as they will have rental income for longer.

However even frustrated property buyers need security and landlords should be doing everything they can to look after their tenants interests, including doing more to protect their tenants deposit funds. Tenant liability insurance can help tenants protect deposit monies through covering any damage to rented properties caused by tenants or their visitors, up to the value of £2,500 (GBP) even if the damage was caused accidently.

UK property price increases were recorded in all areas of the UK with annual house price inflation recorded at:

  • 14.6% in Scotland
  • 9.4% in England
  • 7.5% in Northern Ireland
  • 5.7% in Wales.

The annual price increases in England were apparently driven by increases in property prices in the following regions:

  • East – 11.4%
  • London – 11.2%
  • South East – 11.2%

In March 2015, prices paid for properties by first-time buyers were an average of 7.8% higher than they were back in March 2014, but prices increased by 10.3% for existing property owners over the same time frame.

Existing property owners may be encouraged by the ONS figures, which indicate the possibility of significant financial returns on investment properties, but the truth is that property price increases are outstripping wage rises, raising further concerns about future affordability for potential property buyers living in rented property.

This is where landlords can be of real service for their tenant’s future interests, providing them with access to specialist insurance policies that protect the tenant’s hard save deposited funds with tenant liability insurance. Plus there are also specialist products available to landlords that can help guarantee that property rental income will still be received, even if their tenant experiences a change in employment or health circumstances. Rent Protection insurance is used in conjunction with comprehensive tenant referencing to provide landlords and their tenants with additional peace of mind that the rent will still be paid even if things suddenly change.

This was written by Mike Clarke. Posted on at 11:30 am. Filed under Insurance. Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. Follow comments here with the RSS feed. Both comments and trackbacks are currently closed.