Will it be twice as bad?
Experts have warned that the current crisis from the Pandemic could result in twice as many redundancies as there were in 2008 – 2009 as a result of the Global Financial Crisis! A survey carried out by the British Medical Association (BMA), found that 80% of 500 GPs and hospital consultants surveyed believed a second wave is “likely” or “very likely” to happen.
That will mean a lot of people out of work and a lot of negative consequences as a result. When people are out are of work, inevitably all roads lead back to some sort of effect on the housing market. Tenants can no longer afford to make their rental payments, home owners can fall short on their monthly mortgage payments and risk losing their homes. These two scenarios played out heavily during the 2008 financial crisis, and when this happens the length and breadth of the country, it means there are more and more empty properties. When there is more and more empty property on the market, then landlords and property owner will need to start think about insurance for empty property & cover level on their property:
- Insurance for empty property
- The reduced levels of cover to their building
These two important factors ring true for both Commercial & Residential Property. Small business are already under strain that they have not felt in their working life times, and the knock-on effect has resulted in more and more closures on our high street. The same can be said for residential tenants, and with the apparent onset of some further lockdown measures being introduced, the more jobs will be lost meaning more stress is placed meeting rental obligations. Incredibly bleak outset it seems.