Private Landlords See The Value Of Their Properties Fall By Around GBP118 Billion

    LONDON, ENGLAND, August 01, 2009 /24-7PressRelease/ -- Sainsbury's Finance estimates that as house prices have fallen, private landlords have seen the collective value of their properties fall by a staggering GBP118.4 billion between the first three months of 2008 and the same period for this year. This equates to an estimated GBP324 million a day. The worst affected area is London, where private landlords have seen the value of their properties fall by an estimated GBP37.36 billion.

Lucy Hunter, Landlord Insurance Manager, Sainsbury's Finance said: "The environment for landlords has become increasingly difficult. In addition to a fall in the value of their property portfolios, rental yields have also come down because the market is now saturated with new rental properties as many homeowners look to rent their properties rather than sell.

"When faced with these kinds of pressures, it can be tempting to look at ways to cut costs. We are urging landlords not to cut back on buildings and contents insurance as doing so could prove false economy. Your property is a huge asset so it's imperative it is properly protected."

Sainsbury's Finance offers a home insurance policy for landlords, providing comprehensive cover and benefits at competitive premiums. The policy, which is aimed at landlords with a small portfolio of properties, insures against loss of rental income of up to GBP20,000 and contents cover of up to GBP40,000. It is also only one of a few home insurance policies for landlords, to offer unlimited buildings cover.

Sainsbury's Finance analysis of market data(3) reveals that there are some 3.19 million privately rented properties in Britain. Just over 19% of properties in London are privately rented, which is the highest percentage for any part of the country.

Sainsbury's Finance home insurance for buy-to-let properties, which offers a simple telephone application process, offers a number of features and benefits including:

• Two choices of contents cover - up to GBP40,000 for furnished properties and GBP5,000 for those that are unfurnished. High risk items are insured up to GBP5,000 - this includes TV and audio equipment, pictures and paintings
• Unlimited buildings cover
• Loss of rent income up to GBP20,000
• Unlike some home insurers, Sainsbury's Bank does not apply charges for customers paying their premiums by direct debit
• Maximum no claims discount of up to 40%
• No claims discount protection

To find out more about Sainsbury's Home Insurance, call 0800 731 7978 or log onto www.sainsburysbank.co.uk
Sainsbury's provide a wide range of financial services including pet insurance, life insurance, savings accounts and home insurance, visit www.sainsburysbank.co.uk now to find out more

Notes to Editors

(1) Sainsbury's Finance has been awarded Best Direct Home Insurance Provider, Your Money 2009
(2) Sainsbury's Finance analysis of data from the Office of National Statistics, GfK NOP and The Halifax House Price Index
(3) Sainsbury's Finance analysis of data from the Office of National Statistics and GfK NOP

Sainsbury's Home Insurance for Landlords covers up to 10 properties

Sainsbury's Finance:
To view our latest press releases and product information, please visit the Sainsbury's Finance online media centre at www.sainsburysfinance.co.uk/media.

Sainsbury's Finance offers a range of quality, competitively priced, award-winning products. It opened for business on 19th February 1997 and was the UK's first supermarket bank. It is a 50:50 joint venture with Sainsbury's and Lloyds Banking Group.

Sainsbury's Finance offers the following products: Credit Cards and Loans, a range of Savings products and Car Insurance, Life Insurance, Home Insurance, Travel Insurance and Pet Insurance

For further information and general Sainsbury's Finance enquiries customers can call the freephone number on 0500 40 50 60 or visit www.sainsburysfinance.co.uk

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