Many reports are claiming that a rush of buy-to-let landlords sprung the property market back into life during March, with the highest number of home sales since 2007. If you are one of the investors who purchased a new property, you must remember to protect it.
The latest House Price Index from LSL Property Services shows that there were 80,000 property transactions last month as buyers rushed to beat the Stamp Duty deadline in the buy-to-let and second homes sectors.
The data also indicates that house prices rose by 6.9% annually. When London prices are excluded, growth stands at 5.1%.
The sales figure is 18,650 higher than in February – a 30% increase. It is also 7% higher than the average spring increase of 23%, says the report.
The average house price in England and Wales is now £291,650, according to the index. This is up by 0.6% on February.
The Director of Reeds Rains and Your Move estate agents, Adrian Gill, comments: “This spring, with a frantic flurry of activity, the housing market has come to life. As a result of the impending Stamp Duty hike, this has been the strongest March for home sales in nine years.
“The surge was widespread across England and Wales, with a 30% upswing in transactions since February. This goes beyond any normal seasonality, with second home and buy-to-let investors rushing to beat a bigger tax bill.”
He describes the house price growth as “welcome news for homeowners, who now have a fantastic opportunity in the current sellers’ market”.
Gill adds: “The pervasive shortage of homes on the market is still driving up values, as buyers have to compete for each available property. If they are going to make it easier to get a foot on the property ladder, the Government will have to double-down on its help to first time buyers, or let up on landlords.”1
While there may be a shortage of homes for sale, it is expected that the private rental sector will soon see a surge of properties to let, as landlords have quickly expanded their portfolios.
If you are one of the landlords that has bought a rental property recently, it is crucial that you remember to protect your investment. While you may look after your own home, your new property is also a valuable asset. Landlords Property Insurance will protect you against loss or damage caused by a host of situations, including fire, malicious damage caused by your tenants and flooding.
If you struggle to find tenants at a time when the market is flooded with rental properties, you will also need to ensure your property is safe. That is where Unoccupied Property Insurance comes in. This policy will also cover you if your property is empty between tenants or if you’re redecorating.
And while most tenants will pay their rent on time, anyone can face financial difficulties at any time. To make sure that you still get paid, Rent Guarantee Insurance will cover rent payments, even if the tenant defaults. You’ll also be covered for legal expenses if you have to evict them.
Buying an investment property can be very exciting, but you must remember to look after your new asset – these policies will help you do just that!