Insurance News Archive

Low supply 'driving up prices for portfolio property insurance holders'

Posted by Michael Brown

Lack of supply is driving up prices in the UK housing market, which could be good news for portfolio property insurance policyholders.

Nigel Ellis, director at Prickett & Ellis, said that because supply is still lower than what it should be, this is creating the impression that there is more demand for the fewer properties that are on the market, leading to rising values.

He was commenting on a report from the Royal Institution of Chartered Surveyors, which found that 17 per cent more estate agents reported a rise rather than a fall in house prices in April.

This was compared to nine per cent saying the same thing in March.

Mr Ellis believes that the fact that the UK is not in the euro will benefit the housing market and therefore portfolio property insurance policyholders.

"Property is a bit of a hedge against inflation – it is an asset that is related to inflation and tends to go up with inflation. The fact that we are self-contained economically is of great benefit," he said.

12 May 2010