Property Specialist Predicts Significant Sector Growth

The property insurance specialist PropertyRisks has created a dedicated broker support unit and doubled the size of its Eastleigh premises.

Compared with stagnation in other areas of business, PropertyRisks believed the let property sector represents a significant growth opportunity for brokers,

As landlords seek to minimize the financial risk of tenant defaults in a weakening economy, the company predicts a growing demand for legal expenses and rent guarantee cover as well as landlords’ buildings and contents cover.

Commenting on the potential for growth, PropertyRisks managing director Miles Ritchie said: “Industry statistics indicate that professional investors have a long term commitment to the market, with the majority planning to maintain their portfolios for 16 plus years. The Association of Residential Letting Agents has reported that it is anticipated that the lettings sector will grow to 15% of all housing over the next 10 years, which equates to an average of 30,000 new tenancies a year.

“We do not see the downturn in the economy having a significantly adverse impact on this growth in the lettings market, but inevitably there will be an increase in risk. In the current market, protection for landlords becomes more necessary and the provision of specialist products represents growth potential for brokers.”