Falling capital values cause landlords to lose £324 million a day!

Sainsbury’s Finance have estimated that becasue of falling house prices buy-to-let landlords have seen the collective value of their buy-to-let properties fall by a staggering £118.4 billion between the first three months of 2008 and the same period for 2009.

This they say equates to an estimated £324 million a day. Quite a lot! Worst affected is London where private landlords have seen the value of their properties fall by an estimated £37.36 billion.

Despite these fall we urge landlords not to cut the sum insured under their landlord insurance. This is because despite falling house prices build costs have largely remained unaltered. When insuring a buy-to-let property landlords are austensibly insuring themselves against the costs of rebuilding their property or theft and damage. If anything the risks faced by landlords have increased during the current down turn so now is not the time for landlords to be playing fast and loose with their landlord insurance cover.

Free property management software, Free tenancy agreements