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Throughout the decades, the insurance industry has adapted, thus demonstrating a need for flexibility from all parties. Customers require and expect versatility when searching for products such as home protection. This means advisers have to facilitate, offering a flexible service to provide their customers with good outcomes.
In the current financial climate, advisers should grasp the opportunity to reflect on the ancillary products you offer. It’s a crucial point in time, where the slowing of mortgage business calls for other means of income. General Insurance is an ideal way to re-engage with customers throughout the year, providing a steady bolt-on form of income for advisers.
The latest property market data shows that with a clear pattern emerging, homeowners can plan ahead and build the shield to prevent unexpected losses of income or assets.
Recent findings from leading UK mortgage lender Halifax have revealed house prices have taken a sharp downward trajectory due to the rising interest rates. The most significant drop in 14 years means house prices have fallen around £14,000, with the average household costing £279, 569. However, these figures are still £40,000 more expensive on average than before the pandemic in 2020.
This noticeable drop of 4.6% in average house price cements itself as the most considerable annual decrease since 2009, in the wake of the credit crunch that swept across the country. With interest rates inflating, the decreasing property valuations could be seen as a direct result of people lowering their target spending range due to more demanding mortgages.
According to Zoopla, the number of houses sold over 2023 is set to be the lowest number since 2012. As a result of mortgage rates and fluctuating house prices throughout the year, amongst other uncertainties, buyers have been more wary of purchasing assets, with figures painting a clear picture.
Experts predict around one million sales in 2023, almost a fifth of the figure presented from 2022. Contrary to house prices beginning to come back down from their inflated altitude, many homeowners are believed to be waiting for a more stable market concerning rates.
Over the next three years, figureheads in the financial industry expect rental growth to reach a staggering height of 25%. This comes as Hamptons also predicts that house prices will rise 5.5%. They have concluded that higher interest rates have been detrimental to those looking to purchase property, causing more of a knock-on effect on rent rates than on falling house prices.
In July this year, the average rent rate on let properties climbed just under 10%, the 27th successive calendar month where rent rates have grown by over 5%. This, paired with the cost-of-living crisis and other factors mentioned throughout this article, has seen a 43% drop in assets available for rent across the UK since July 2019.
Now more than ever, clients need advice. We’ve seen the rise of aggregator websites due to their accessibility. They offer a service allowing customers to get online and obtain a quote for most products they might require. However, as a client that is most likely not fully knowledgeable about insurance, Source offers an experience that allows customers to gain the insurance that fits their needs best.
With the constant fluctuation of the economic climate, customers are more likely to visit comparison sites to get the best deal. Despite this, there may be factors missed throughout an insurance policy that Source are happy to ensure you obtain. These small areas of a quote can make a significant difference to sufficient protection and need to be considered as a crucial part of coverage. This is why Source offer a personal and unique experience for every customer.
To find out more, take a look at our previous article, ‘The Power of Personalised Support’.
Source have been helping advisers add GI into their services for over 25 years through a range of methods. Take a look at our website to find out more for yourself – www.thesource.co.uk.
House price index (2023) Halifax UK | House Price Index | Media Centre. Available at: https://www.halifax.co.uk/media-centre/house-price-index.html (Accessed: 12 September 2023).
What’s happening in the rental market? (2023) Estate Agents London. Available at: https://www.hamptons.co.uk/research/articles/whats-happening-in-the-rental-market#/ (Accessed: 12 September 2023).
Donnell, R. (2023) House price index August 2023 – Zoopla, House Price Index August 2023. Available at: https://www.zoopla.co.uk/discover/property-news/house-price-index/?trk=public_post_comment-text (Accessed: 12 September 2023).