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Buy to let insurance: Northern property 'more susceptible' to economy
16 Aug 2010
Landlords with buy to let property insurance have been told that certain areas in the north of England will be "much more susceptible" than parts of the south to future economic changes.
Timothy Lambert, head of consulting at Ducalian, explained that typically wealthy areas such as Kensington and Chelsea were "in a bubble" and not directly affected by the same fluctuations as most of the country.
"Foreign money and high earnings will always keep prices stable and high. Whereas somewhere such as Sunderland will be much more susceptible to the UK economy as a whole and can paint a bleaker picture than it is elsewhere," he added.
The expert's view follows a report in the Independent, by Liam Bailey, head of residential research at Knight Frank, suggesting that the London property market was likely to withstand any future downturn better than the north of England would.
Mr Lambert went on to say that buy to let property insurance customers should adopt "at least a ten-year view", while any future rise in interest rates could potentially result in a rise in the number of defaults and repossessions.
Posted by Jonathan Walker
