Insurance News Archive

Property insurance customers 'may see 5% house price rise'

Written by Judith Stevenson

Property insurance policyholders may see a five per cent rise in the price of UK houses in 2010, according to one expert.

Francis Ghiloni, commercial director at realpricecomparison.com, made the statement after a report by Assetz suggested that such an increase may be possible.

He said that the housing industry is being boosted by increased competition among lenders and more firms being willing to lend, which is stimulating supply and causing property insurance customers to see more homes come onto the market.

"We've been through a period where house prices rose out of all proportion to wages and buyers had to stretch themselves to the limit just to get a foot on the ladder," Mr Ghiloni explained.

He added that as house prices have come "crashing" down in the last 18 months, landlords insurance customers who have been biding their time may now be in a position to bolster their portfolio and begin profiting.

23 Nov 2009