Landlord News

Increase in Landlords Purchasing Rental Guarantee Insurance

In the last six months sales of Rent Guarantee Insurance have risen by almost 40% for the insurance firm Let Alliance. Rent Guarantee policies ensure that Landlords are covered against tenant defaulting or failure to pay rent.

It appears this trend may continue as home ownership levels continue to fall and are currently at 66%, their lowest level since 1988. This means more people, especially the younger generation, will be looking to rent a wide variety of properties from flats to shared houses.

The main cause for this increase in protection is the growing concern Landlords have over tenants facing lower job security and higher rent prices. It is not surprising that more Landlords feel this way as last week the BBC reported that rent costs rose in January.  They also mentioned how the annual change in rent has seen growth in almost every region of the country, apart from the North East.

Let Alliance’s Sales Director, Paul Pearce stated, “Letting agents are making sure that they protect their landlords income more often than we expected”. So it is clear Landlords are being encouraged to take out some form of insurance in order to protect themselves while in the midst of this current economic climate.  Mark Long, director of BDRC Continental, warns Portfolio Landlords in particular that they have a greater exposure to risks related to the property market.