Insurance News Archive
Buy to let insurance companies among property investors
Providers of buy to let insurance along with banks and fund managers are increasingly looking to invest in the residential property sector, according to new figures.
An increase in both demand and rental yields are said to be the main reasons behind the increased interests from the three sectors.
The newspaper reports that financial institutions such as the three mentioned spent £2.2 billion on residential properties over the last financial year.
That figure is up from £765 million in 2009/10 and is also at the highest level post-credit crunch, according to City law firm Wedlake Bell.
Jeremy Raj, head of the firm’s Residential Property team, said: "There has been a startling jump in purchases of UK residential property by institutional investors.
"Institutions are being attracted to residential property because of improving market fundamentals, including high tenant demand, high rents and a supply shortage."
The figures show that the supply shortage has helped push up average rents to £720 a month.
Posted by Judith Stevenson
20 Dec 2011
