10th September 2019

SELF-STORAGE INSURANCE CONCERNS

Some home insurance policies provide cover for ‘items temporarily removed’ from your home, although there may be a time limit, typically 30 to 90 days, and you need to inform your insurer when you deposit items in a storage facility. MPs have raised concerns about the insurance policies that storage companies insist users buy, as they may not be value for money or provide sufficient cover or be needed at all if the user has cover under their home insurance policy.

MORTGAGE AFFORDABILITY GRADUALLY IMPROVING

With annual wage growth at 3.4%, and house price growth subdued, buyer affordability has been rising in some parts of the country at its fastest rate since 2011. With mortgage rates remaining competitive, this is good news, particularly for first-time buyers.

HOLIDAY LETS – AN ALTERNATIVE TO BUY-TO-LET?

The recent regulatory and tax changes are encouraging landlords to look instead at furnished holiday lets. HMRC views holiday homes as businesses and they are exempt from the mortgage tax-relief changes faced by buy-to-let landlords. According to Second Estates, an alternative investment fund manager not regulated by the Financial Conduct Authority or covered by the Financial Services Compensation Scheme, the average weekly income from a holiday let is £563, nearly three times the typical buy-to-let rent of £191.

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.