A leading unoccupied property insurance broker is warning its landlord client base that 2011 could be a year of increasing tenant defaults.
Titan, which controls a major unoccupied property insurance portfolio, notes the results of a recent YouGov poll which was commissioned by Shelter, a housing charity. It concluded that over two million are turning to credit cards, and other sources of credit, to keep up with rent and mortgage payments. And this trend has increased by over 50% from last year.
The survey recognised that 2010 was a good year for the rental market and that demand is still out-stripping supply. Nonetheless, it paints a bleaker picture for the future as the true impact of the coming austerity cuts are felt.
Chief Executive Officer of Titan Insurance, ●, said:
“It’s a question of who you believe at the moment, with some experts declaring that the rental market will remain strong in 2011, whereas some declaring there is major trouble looming on the horizon. We are recommending our clients to remain vigilant.
“There will be inevitable ramifications as the austerity cuts begin to hit home. It might not be a wholesale slaughter as some predict, but landlords would be wise to take in hand quickly any tenants that show signs of getting behind. Being aware of potential problems and acting quickly, could make all the difference. Landlords need to be ready to act.”
Titan is one of the largest unoccupied property insurance brokers and has a large number of clients operating in the sector.
● on ● Titan Insurance