If you have joined the ranks of an estimated £2.8m buy to let landlords in the UK, your property is an investment – probably one of the most valuable investments you are likely to make.

It makes sense, therefore, to protect that investment with one of the wide range of products designed to provide the safeguards you need, according to the changing circumstances of your property holding.

But before we actually look at some of the principal ways in which landlord insurance may continue to protect your property, let’s take a look at the different types of landlord there are in the UK. This is important as, typically, different types of property insurance will be required depending on the type of landlord and letting situation.

The different types of UK landlords

In the UK, there are several types of landlords who own and rent out properties:

1. Private landlords: These are individuals who own one or more properties and rent them out to tenants. They can range from individual property owners to those who own multiple rental properties as part of their investment portfolio.
2. Corporate landlords: These are companies or organisations that own and manage rental properties on a larger scale. They may own residential properties, commercial properties, or a combination of both.
3. Social landlords: Also known as housing associations or registered providers, social landlords are designed to provide affordable housing to people in need. They often receive funding from the government and may specialise in housing for specific groups, such as low-income families, the elderly, or individuals with disabilities.
4. Local authorities: Local councils or government authorities in the UK also act as landlords by providing social housing to residents. They own and manage properties within their jurisdiction and allocate them to eligible tenants based on housing needs and criteria.
5. Institutional investors: These are institutional investors such as pension funds, insurance companies, and private equity firms that invest in the UK property market. These investors may own large portfolios of rental properties either directly or through investment vehicles.

Each type of landlord may have different motivations, responsibilities, and regulatory obligations when it comes to renting out properties in the UK.

For the purpose of this article, the focus is on private and corporate landlords.

Insurance for landlords

There are several insurances that landlords need to consider, depending on their circumstances.

Landlord insurance

UK landlord insurance is a specialised type of insurance designed to provide cover for individuals who own properties that they rent out to tenants. This insurance typically goes beyond standard home insurance to address the unique risks and liabilities associated with being a landlord.

Landlord insurance typically includes cover for the building structure, as well as optional cover for any contents owned by the landlord that are included with the rental property. Additionally, it may offer liability cover in case a tenant or visitor is injured on the property.

Depending on the policy, landlord insurance may also provide cover for loss of rental income if the property becomes uninhabitable due to an insured event, such as fire or flood. It may also include cover for malicious damage caused by tenants, legal expenses, and alternative accommodation costs for tenants if the property becomes uninhabitable.

Overall, UK landlord insurance is tailored to meet the specific needs and risks faced by property owners who rent out their properties to tenants.

Recap:

• let property insurance typically provides cover for the structure and fabric of your let property, and if required, any contents which you own within the premises;
• as with any property insurance, the worst case scenario needs to be envisaged, so that the total building sum insured covers the estimated cost of completely reconstructing the premises, clearing the area and legal and professional fees;
• but landlord insurance may also cover much more than the physical risks and perils to your let property;
• your liabilities for the health, safety and well-being of your tenants, for instance, might be looked after thanks to the cover provided to indemnify you against claims of negligence in your duty of care as a landlord;
• landlord insurance may also ensure that your anticipated rental income is just about maintained even after a major insured event has rendered your let property temporarily unfit for letting.

HMO insurance

If you own an HMO (House in Multiple Occupation) then you will require HMO insurance. This is a specialised type of insurance designed to provide cover for landlords who rent out a property to multiple tenants who are not part of the same household.

HMO insurance typically offers protection beyond standard landlord insurance to address the unique risks associated with HMO properties. Cover may include protection for the structure of the building, liability cover in case a tenant or visitor is injured on the property, cover for loss of rental income in case the property becomes uninhabitable due to an insured event, and optional cover for contents owned by the landlord.

HMO insurance may also provide additional features such as cover for malicious damage caused by tenants, cover for properties with a high number of tenants, and cover for specific tenant types such as students or individuals receiving housing benefits. Read more: A landlord’s guide to HMOs.

Commercial property insurance

With similar emphasis on safeguarding the structure and fabric of your let property, commercial landlord insurance also recognises the particular needs and requirements of those owning property that is let for business purposes.

Whether the premises are let as a shop, a workshop, a salon, a bed and breakfast business, a pub, bar or restaurant, commercial landlord insurance is tailored to safeguard the particular business operations of the enterprise.

In addition to the security generally provided by landlord insurance, therefore, this specialist cover also focuses on the provision of compensation for business disruption in the event of an insured incident.

If the commercial property is unoccupied, then unoccupied commercial insurance will be required.

Portfolio insurance

In the context of property investment, portfolio insurance typically applies to landlords or property investors who own multiple rental properties.

Just as the name suggests, it is possible to arrange insurance not only for a single let property but for a whole portfolio of such premises – typically earning the landlord attractive discounts on the cost of insuring premises versus on a case by case basis.

Portfolios insurance has the added advantage of keeping all of your buy to let properties under a single insurance policy, with just one annual renewal date to manage.

This type of insurance typically offers comprehensive cover for the entire property portfolio, providing protection against various risks such as damage to the properties, loss of rental income, liability claims, and legal expenses. It may also include cover for contents within the properties and additional features tailored to the specific needs of property investors.

Portfolio insurance is essential for landlords or property investors who want to safeguard their investment portfolio against unexpected events that could potentially result in financial loss or legal liabilities. It helps to mitigate risks and provides peace of mind, allowing property owners to focus on managing and growing their investment portfolio effectively.

Unoccupied property insurance

With the best will and the greatest care in the world, you are unlikely to avoid vacancies in tenancies – whether through incoming and outgoing tenants or your decision to refurbish the premises themselves. In either event, there is every possibility of your let property lying empty for more than a few months.

Given the particular risks and perils to which an empty property may be exposed – whether through unattended maintenance problems or the unwanted attentions of burglars and vandals – purpose designed empty property insurance is necessary to maintain the level of cover and security demanded by the typical landlord. Read more here: Guide to unoccupied property.

Renovation insurance/property undergoing works

You might have bought it with the express intention of refurbishment or decided to revamp a property you already own, but there is likely to be a place for landlord’s renovation insurance in your plans.

Renovation insurance may be the key to ensuring the protection not only of the existing structure and fabric of the property you own, but also the works in progress and the final extension, reconfiguration or remodelling itself.

All the while, your property owner’s liabilities may also be safely protected with indemnities likely to start at a minimum of £2m

During the course of any renovation building works you are also likely to want cover for the plant, machinery, tools and materials employed in the project. Read more here with our Guide to renovating.

UK holiday home insurance

This is aimed at individuals who own a second home or a holiday property that they rent out in the UK and is, in many ways, a blend of both standard home insurance and landlord insurance. Here’s why:

• ownership and occasional occupancy: You own the property and likely use it intermittently as your holiday getaway;
• potential for rental income: Since you don’t occupy it year-round, your holiday home has the potential to generate extra income by renting it out to paying guests. In this scenario, you assume the role of a landlord to short-term tenants.

The unique, almost hybrid, nature of holiday home insurance sets it apart from both standard home insurance and landlord insurance.

For further insight into the necessity of holiday home insurance, refer to our Guide to UK Holiday Homes.

Summary

As may be clear, therefore, owning your buy to let property might not just call for a basic, all-purpose landlord insurance policy, but one that is specially tailored to meet the diverse and changing needs and circumstances of the typical landlord.

Ensuring that you are prepared to meet some or all of these changing demands, you might want to consider the expertise and experience that a specialist insurance provider such as ourselves may bring.

Please contact us today on 01702 606 301 to see how we can help.

Last month’s Spring Budget was billed by the Chancellor of the Exchequer as a “Budget for Long Term Growth”. Only time will tell whether it achieves that aim but, in the meantime, let’s look at just what the budget holds in store for landlords.

Please note that this is based on the author’s current understanding and research and therefore should not be deemed as professional advice.

Holiday lets

Recent years have seen quite widespread criticism of the growing number of short-term holiday lets – especially in tourist hotspots. Some might argue that the favourable tax regime granted to landlords of furnished holiday lets – tax-free mortgage interest repayments – has unduly encouraged such growth.

The Spring Budget, therefore, proposed the abolition of those tax advantages – arguing that the loss of this and other benefits will encourage owners into much-needed longer-term tenancies. On the other hand, some of those landlords of holiday lets might simply choose to sell up and quit the buy to let market altogether.

An estimated 127,000 dwellings currently benefit from the furnished holiday lets regime and its abolition is expected to raise an additional £300 million for the Treasury (according to an estimate calculated by Landlord Zone on the 20^th of March).

The budget includes further blows to the holiday let market by abolishing the right of landlords to deduct the costs of fittings and fixtures from their taxable income, the removal of tax privileges for pension contributions, and the loss of the option to pay a 10% business rate instead of the full capital gains tax (CGT) whenever a property is sold.

Capital Gains Tax (CGT)

On a brighter note, higher-rate taxpayers will welcome the reduction – with effect from the coming tax year – from the current 28% rate of CGT to 24%. There is no change to the basic rate of CGT which remains at 18%. Landlords are affected by the changing rates of CGT, which is a tax applied when temporary residences such as second homes, holiday lets, and but to let rental property is sold.

Even at 24%, CGT is more onerous for higher rate payers than the tax on other assets such as stocks and shares, where the rate is 20%.

Stamp Duty: Multiple Dwellings Relief

Landlords looking to increase the size of their buy to let portfolios will be hit by the abolition of Multiple Dwellings Relief (MDR) from Stamp Duty Land Tax (SDLT) on purchases of residential property in England and Northern Ireland with effect from the 1^st of June 2024.

MDR has served as a tax break for landlords investing in multiple properties. It has reduced the amount of tax payable on the purchase of one dwelling calculated according to the average price paid for multiple dwellings. The Chancellor argued that MDR no longer fulfils its original intention of incentivising investment in rental properties.

The saving to the Treasury from the abolition of MDR is estimated to be £700 million annually.

Empty Property Relief

With the imminent start of the new tax year, there will be a “resetting” of the current Empty Property Relief (EPR) arrangements.

Commercial landlords can apply for empty property relief and avoid paying business rates for the first three months from which premises become empty. Up until now, there has been an obligatory 6-week waiting time after the end of one period of relief and the start of any new period of vacancy.

That “resetting” period has now been extended to 13 weeks. The Government website explains: “The current 6 week reset period requirement will therefore still apply where that period started before 1 April 2024 and ends on or after that date. If a previously empty property is reoccupied on or after 1 April 2024, it must be occupied continuously for 13 weeks before it can benefit from a further period of empty property rate relief.”

By extending the delay before qualifying for relief once again, the Treasury hopes to curb the practice of some landlords who have persistently rolled over successive periods of business rate relief on empty properties they own.

VAT

Most landlords do not have to worry about VAT since residential lettings are exempt from that tax.

The exceptions, however, are holiday lets and self-catering accommodation. If you are the landlord of this type of business and your rental income from such property exceeds the tax thresholds, you must register for VAT.

The Spring Budget raised that VAT threshold from its current £85,000 to £90,000 per annum with effect from the 1^st of April. The threshold for deregistration has been similarly increased from £83,000 to £88,000.

Industry reactions

Although the reaction from the private sector rental industry has been mixed, the overall assessment is probably best summed up by the National Residential Landlords Association (NRLA) in its comments on the 6^th of March.

The Spring Budget represented a “missed opportunity” and a failure to give priority to investment in the provision of new homes to rent, said the NRLA. It accused the Chancellor of “tinkering” with marginal issues for short-term electoral gain rather than giving support for longer-term investment in a high-quality private rented sector. By way of illustration, the NRLA considered that increased taxation of holiday lets and bigger allowances on CGT would make little difference to the long-term investment in this sector of the housing market.

There had been a failure to address the current high demand for and low supply of affordable, quality rented accommodation, complained the NRLA.

The National Residential Landlords Association (NRLA) branded the Spring Budget delivered by the Chancellor of the Exchequer in March a “missed opportunity” for the housing sector. Let’s see whether the latest UK property news headlines paint a rosier picture.

Renting set to boom as buying is even less affordable

At an average of £290,000 last year, house prices in England have now reached more than eight times the average annual salary, revealed Landlord Today on the 26^th of March.

Yet the Office for National Statistics (ONS) has calculated that a common measure of affordability of housing is just five times a buyer’s annual income.

The discrepancy leads the article to argue that the unaffordable high price of buying heralds a boom in renting.

In support of its argument, Landlord Today points out that:

• unsurprisingly, the London Borough of Kensington and Chelsea is the place where homes are least affordable – more than 34 times average incomes;

• even in the more affordable region of Wales, buyers would need more than six times their annual income to buy a home – again, well above the ONS measure of affordability;

• since 1997, average salaries have doubled – but house prices have shot up by more than four and half times; and

• a first-time buyer in full-time employment would need to spend around 14 times their annual salary to buy their home – yet anyone spending more than a quarter of their take-home pay on the mortgage is judged to be at risk of arrears in repayments.

Huge contribution landlords make to UK economy revealed

In an article on the 25^th of March, the Buy Association cited reports calculating that landlords comprising the private rented sector contribute some £45 billion to the UK economy.

In England and Wales, the biggest part (80%) of that contribution comes from medium and small property owners with fewer than 15 let properties. They account for some 3.8 million dwellings in the private rented sector which comprises a total of some 4.8 million properties.

It is not only a financial contribution since these owners of buy to let property sustain 390,000 jobs – either directly employed or those working in the industry’s supply chain.

Study says: “UK property offers the worst value for money in the developed world”

Citing studies by the Resolution Foundation, the US media channel Bloomberg on the 24^th of March slammed housing in the UK as some of the worst value in the developed world.

It reported that homes in the UK are not only older than those in other parts of the world but are also smaller – even “more cramped” than the average apartment in New York, says the article.

The problem of housing the UK’s population is rising up the political agenda insists the Resolution Foundation because rocketing prices mean that many younger people continue to struggle to get a first foot on the housing ladder.

What’s the average UK energy bill and how can I save money?

In its latest study of domestic energy bills, on the 22^nd of March, the online listings website Rightmove updated the current average costs.

Examples of the findings are as follows:

• 2-bedroomed flat – annual average bills range from £845 for the most energy-efficient dwelling to £4,737 to the least efficient;

• 3-bedroomed semi-detached house – from £1,187 to £6,279;

• 3-bedroomed detached house – from £1,193 to £9,143; and

• 4-bedroomed detached house – from £1,440 to £10,130.

If you are a householder looking to save money on those energy bills you might want to consider measures such as improving the insulation of your home, installing a smart thermostat, adjusting the flow temperature on any combi-boiler, requesting a smart meter from your energy supplier, and remembering to close the curtains or blinds at night.

Further reading: How to save even more money on your energy costs.

Bad debts are the scourge of many a business – and, for landlords of course this takes the shape of rent arrears.

Managing any rent arrears is important for the cashflow of any buy to let business and the bottom line of any profit you expect to make – an especially critical consideration at a time when changes in tax legislation and other government regulations are steadily squeezing your opportunities for running a viable business.

So, what are some of the steps you might take to reduce the incidence of bad debts and rid yourself of the curse of rent arrears? They fall under two broad headings – prevention and eviction:

Prevention

• prevention, of course, is much better than having to find the cure for rent arrears;
• that means exercising particular care in your selection of tenants by insisting on taking up references and conducting proof of income checks by way of payslips or a certified bank statement on the prospective tenant’s account;
• references from friends of the tenant are obviously less reliable than from, say, their employer or, even better, from a previous landlord;
• when evaluating the references, of course, your main aim is to try and establish that they are indeed able to afford the rent and that their past record suggests they are not going to fall into arrears;
• this takes a fair degree of judgment on your part, which is likely to stand you in better stead the more experienced you are in doing it;
• especially if you are relatively new to the buy to let business, therefore, you might want to use a professional reference checking service – if you are using a Lettings Agency, they can do this on your behalf;
• if any doubts arise during the reference checking process, you might want to insist on the tenant providing a guarantor – preferably a home owner themselves and certainly one with a UK address;
• if you go down this route, make absolutely certain that the guarantor is fully aware of their responsibilities and obligations in that role in the event of your tenant defaulting on rental payments;

Rent guarantee insurance

• as part of your preventive or defence strategy, you might also want to consider the inclusion of rent guarantee insurance in your wider landlord insurance policy;
• just as the name suggests, the cover provides compensation – up to a maximum amount, for a given period – if your tenant defaults on the rent or does a moonlight flit;
• it comes packaged with legal protection insurance – to cover the costs of any legal action you may need to pursue to evict the tenant concerned. IMPORTANT: Please note that to enjoy the benefits of a rent guarantee policy, you must obtain one Credit Agency Reference (from a reputable Credit Reference Agency) and at least one satisfactory written character reference for each tenant. Failure to do so will render any claim invalid;

Eviction

• at the first sign of any rental arrears, it is important that you talk to your tenant about them – and this relies on your having maintained a reasonable channel of communication and a good landlord tenant relationship from the beginning of the tenancy;
• the relevant legislation requires that you give the tenant every opportunity to clear the arrears – by attempting to agree a payment plan, perhaps;
• this might include coming to an agreement that any housing benefit to which the tenant is entitled is paid directly to you;
• it might also be the time for you to contact anyone who has stood as guarantor for the tenant and to put recovery of the outstanding rent into action by that means;
• if your efforts to recover any arrears from your tenant have failed, you are likely to want to take possession of your let property once again by serving one of two notices defined in law, before attempting to recover the outstanding arrears;
• a section 21 notice may be served for any reason and gives you automatic repossession of your property, but may only be used once the fixed term of an assured shorthold tenancy agreement has expired;
• a section 8 notice may be served for any reason given under the relevant legislation – including failure to pay the rent (with arrears that are longer than two months) and anti-social behaviour;
• in all cases you must give your tenant written notice, usually at least 2 months, of your intention to regain possession;
• if the tenant then refuses to leave the property, an order for eviction may need to be given by the courts and, if you served a section 8 notice, the court may also order the tenant to repay any outstanding rent at that time;
• failing that, you may need to consider legal action to recover the arrears, relying upon your legal protection insurance to cover the costs and your rent guarantee protection to compensate for arrears that have not been recovered through the courts.

Rent arrears are a curse for any landlord, but, having done your best to prevent their arising in the first place, rent guarantee and legal protection insurance may help you avoid the full extent of any loss.

Note: This information is based on current law as at April 2024, but may change. Please always seek professional advice.

If you are the landlord of buy to let property, what is likely to be one of your chief worries? If you are like the majority of landlords, this is likely to be a question of your tenants continuing to pay the rent when it falls due.

Payment, after all, is not only a question of the tenancy agreement to which you are both signed up, but rental income is also something on which you are likely to rely in order to meet the costs of running your buy to let business – costs such as the monthly mortgage repayments, the let property insurance you need to protect the property, and the seemingly never-ending requirement for maintenance and upkeep.

Indeed, your entire livelihood may depend on the collection of that rent and there may be many landlords who rely on such income as their pension.

That is why you may wish to consider residential let legal expenses and optional rent protection – you can find out more here.

What recourse might you have, therefore, if your tenants fail to pay their rent and slip into arrears and you don’t have rent guarantee insurance?

Let them know

• it might seem an obvious course of action, since most tenants are going to know full well when they have fallen behind with the rent;

• but it important you let your tenant know that you are aware they are slipping behind with the rent;

• you might want to avoid appearing too threatening at this stage, since there may be any number of reasons why the tenant has temporary difficulties in paying the rent and your aim, after all, is simply to ensure that you are paid what you are due, remaining on the best possible terms with your tenant;

Your records

• similarly important – and something that might seem too obvious to mention – is your need to keep a careful record of when rent is due, when it is paid and when it is not;

• if subsequent action comes down to the wire of your considering legal action to recover outstanding rent, then your written records are clearly going to count for a great deal;

Demand action

• if your tenant has not responded to your letter notifying him that rent is due or has failed to answer your telephone calls, it may be time to up the ante and send a letter by recorded delivery demanding that all rent due is paid;

Is there a guarantor?

• the Consumers’ Association’s magazine Which? suggests that you might also follow up your demand for outstanding rent with any rent guarantor – once again, this needs to set out precisely how much rent is due and for what period, explaining some of the consequences for the guarantor if the rent is still not paid;

The two-month milestone

• if your tenant has still not paid the rent within two months of it falling due, you have the legal right to recover possession of your property under Section 8 of the Housing Act 1988;

• this is effectively an eviction notice on the grounds of non-payment of rent and something you might want to keep up your sleeve only as a last resort;

• legal proceedings such as this always involve costs, although these, together with the rent you are due are going to be awarded by the courts if you succeed in your action;

With the best will in the world, even the best tenants may default on their rent from time to time, in the event of their finding it genuinely difficult or impossible to pay. How far you are prepared to press for payment of what is due may call for a fine judgment as to the potential costs and hassle, compared to the actual debt outstanding and your assessment of the tenant’s finally paying.

Instead of pursuing court action, for instance, you might decide to support your tenant through their current financial difficulties on the understanding that the problems are essentially temporary.

You might offer further help by proposing a plan by which the tenant may pay off outstanding rent in instalments, thus spreading the burden of repayment.

Or, you might also want to suggest to your tenant that they consider applying for housing support if their circumstances suggest that meeting their rental obligations is likely to be a longer term problem.

Note: This information is based on current law as at April 2024, but may change. Please always seek professional advice.

If you have decided to sell off your property portfolio, we have put together some quick tips to help you achieve your investment objectives.

Assess your portfolio

Begin by evaluating your entire property portfolio. Determine which properties you wish to sell and consider factors such as location, market value, rental income, and potential for appreciation.

Get help

Seek advice from estate agents – they can provide valuable insights into market conditions, pricing strategies, and the sales process.

How many agents should I use?

This really depends on what you feel comfortable with.

An agent offered a sole agency, for example, may be able to quote a cheaper rate of commission in the property is sold within the term of your contract with them – typically a period of between 8 and 12 weeks. If you make the wrong appointment, however, you are effectively stuck with that agent for the duration of the contract – and if any property in your portfolio is sold by another agent during this period, you still need to pay the sole agent’s commission.

The multi-agency approach allows competition between those agents you choose to instruct and the commission is paid only to the agent who successfully sells your property – so rates of commission tend to be higher.

You might want to beware of instructing too many agents, however, since a proliferation of marketing attempts for the same property may give buyers the impression that you are desperate to sell – and the offers you receive are likely to reflect that impression.

Prepare your properties

Prepare your properties for sale by ensuring they are in good condition and making any necessary repairs or upgrades to enhance their appeal to potential buyers. Consider staging the properties to showcase their full potential.

Set a competitive price

Determine the asking price for each property based on its market value, comparable sales in the area, and your financial goals. Price your properties competitively to attract potential buyers and maximise your return on investment.

Viewings

• if you have a whole portfolio of properties on the market, you are unlikely to want – or even have the time for – managing viewings entirely on your own;

• indeed, this is a valuable part of the service likely to be offered by any estate agent worth his salt;

• nevertheless, remember that you still have an interest in making the agent’s job as easy as possible and granting viewings to suit their schedule rather than your own – the agent still needs to be able to communicate with you;

Offers

• one point that is especially relevant, of course, once offers start to come in;

• the agent’s job involves rather more than simply receiving an offer and passing it on to you – there is a lot of information, relevant to the buyer’s ability to pay and when the sale might be completed, which you need the agent to collect on your behalf;

• although you may reasonably expect your estate agent to play an active part in negotiating with potential buyers, beware of granting any permission for the agent to reveal how much you might be prepared to accept as a purchase price – it is likely to be used by the buyer as the new negotiating price;

Manage the sales process

Throughout the sales process, stay organised and proactive in managing the sale of your property portfolio. Keep track of important deadlines, paperwork, and communication with buyers, agents, and other parties involved in the transaction.

Scruples

• one final decision might be seen as testing your scruples as a property dealer;

• once an offer has been made and accepted, do you then withdraw the property or properties from the market or stand by the principle that nothing is certain until contracts have been exchanged in the hope of receiving a higher bid? The choice is yours of course.

The sale of a property portfolio is not something you are likely to want – or are capable of – taking on by yourself. If you intend seeking the relevant professional help of an estate agent or agents, you might want to keep in mind some of these tips and suggestions.

What are the current hot topics of UK property news? Let’s delve behind some of the headlines to find out.

New attack on Airbnb landlords in Scotland – possible bin collection charges

The government in Scotland already regulates Airbnb properties more stringently than elsewhere – these short-term lets must be appropriately licensed and their landlords may have to pay a higher rate of Council Tax and business rates. A story in Landlord Today recently suggests that those controls may be tightened still further.

In a measure that some may see as purposely punitive, Edinburgh council has floated the idea of charging Airbnb landlords for their rubbish bin collections. It is argued that tenants of such short-term lets tend to generate higher volumes of household refuse.

Average rent in the UK: February 2024

The online property listings website Zoopla published its annual round-up of the UK rental market on the 12^th of February.

The principal takeaways from the site’s overview included the following:

• average rents in the UK have risen by 8.3% in the past 12 months – an annual increase of £1,100 or an additional £90 a month compared with a year ago;

• putting that 8.3% growth into perspective, however, it still represents a slowing of the inflationary trend of rent increases – last year saw a drop from an 11.4% increase to the current 8.3%;

• across the UK as a whole, the average rent currently stands at £1,220 per month – with a range from £2,119 in London to £695 in the northeast of England;

• despite the rent controls that are in force there, Scotland registers the highest rate of increase in rents;

• London – where rents are already so high, they have effectively reached a rental ceiling – records the slowest rate of growth in the past 12 months;

• as the cost of living crisis continues to challenge the affordability of rents, Zoopla forecasts a continuation of the downward trend in the levels of rent increases.

Fundamental interventions needed to correct housebuilding

Citing a recent report by the Competition and Markets Authority (CMA) Propertymark on the 26^th of February pointed to some of the issues currently hampering the competitiveness of the housebuilding industry.

The CMA looked to address shortcomings it has identified in the quality of housing that is being built, the efficiency of land management, the role of local authorities as they oversee the production of housing in their respective areas, and the ability of the housebuilding industry to innovate.

The report highlights an industry in which speculative private development predominates within an environment shaped by unpredictable and complicated planning regulations. Together, these create long-term obstacles to housebuilding output in the UK.

Checklist of what to look out for when viewing an older property to buy

If you are thinking of buying an older property, the Daily Mail on the 26^th of February suggested some of the things you might want to consider:

• older properties will require more repairs and maintenance – their upkeep will be more expensive;

• despite their appealing appearance, many older properties come with unwanted issues that can prove expensive to remedy – thorough inspection and investigation are essential before you buy;

• although you might be breathing new life into old homes, their repair and upkeep are likely to require specialist tradesmen such as electricians, plumbers, and roofers;

• look out for potential structural issues, infestations by pests or rodents, troublesome roofs, mildew and mould, and the likely difficulties in extending storage space in quirkily designed period homes.

A quarter of buyers “bribed” sellers to secure a purchase reveals survey

A story in Estate Agent Today on the 28^th of February illustrated how the current housing market strengthens any seller’s hand.

It revealed that as many as one in four buyers have been prepared to “bribe” the vendor by offering all manner of inducements – from cash to payments in kind.

In a survey of more than 1,000 transactions, 89% of purchasers confessed that the sweeteners they offered the vendor led to success. The most common bribes related to a quick purchase being available (28%) because of the absence of any chain or the fact that they were a cash buyer (24%) prepared to offer proof of the funds available.

Cash backhanders, a free meal and baked goods were also offered.

Unfortunately, no you cannot. If your tenants were forced to vacate your property as a result of an insured risk, your let property insurance may offer you contributions towards your loss of rental income and emergency accommodation expenses for your tenants.

However, tenants fleeing leaving large rent arrears would not be covered under those clauses.

Many landlord insurance policies, including those offered by Cover4LetProperty, include provisions for compensating for lost rental income. However, it’s important to understand that this compensation typically applies to income lost due to severe insured events, such as a significant fire or flood rendering your property temporarily uninhabitable and unrentable pending repairs.

The cover for loss of rental income is usually limited, either by a specified time period or a predetermined amount, often calculated as a percentage of the total sum insured under your primary landlord insurance policy.

It’s crucial to note that these compensation provisions do not cover instances where:

• tenants withhold rent due to disputes with you as the landlord;
• tenants accrue rental arrears due to reasons such as accidents, illnesses, pregnancy, unemployment, or redundancy;
• tenants abscond, leaving behind unpaid rent;
• you are unable to recover unpaid rent from a deposit held by a registered deposit protection company, even after attempting to do so.

Therefore, your landlord insurance typically does not offer recourse for recovering rent arrears. Rent guarantee insurance, however, is a separate product that you can purchase alongside your landlord insurance. In the event of a tenant falling into arrears or vacating the property, rent guarantee insurance serves as your primary means of defence.

Optional insurance options – Residential let legal expenses and optional rent protection

At Cover4LetProperty we are pleased to offer optional, additional cover to your let insurance property.

Our landlord legal protection insurance provides you with comprehensive cover for your legal costs (up to set amounts) at what we believe is a competitive price, offering you peace of mind.

Additionally, our rent guarantee insurance offers reassurance should your tenant defaults on rent payments or absconds, by providing compensation up to specified limits.

Key benefits of our residential let legal expenses and optional rent protection insurance policies include:

• available as a standalone policy to complement existing residential let property insurance cover;
• cover for loss of rent up to monthly policy limits or until vacant possession is obtained;
• reimbursement for lost salary or wages incurred while attending court or tribunal hearings as a witness or defendant, subject to policy limits;
• legal costs covered for exercising your rights to evict individuals not authorised to be on the property, excluding tenants with permission;
• cover applicable to all residential tenant types, including flats;
• our policies not only compensate for lost rental income but also offer generous legal protection cover, including legal costs (up to set limits) associated with recovering rental arrears from tenants awaiting eviction or those who have absconded.

Investing in our residential let legal expenses and optional rent protection insurance ensures you are prepared for unforeseen circumstances and protects your interests as a landlord.

How can I make sure my tenant pays the rent?

Although there is no guaranteed method of avoiding such things happening, it is always highly advisable to move quickly to deal with any non or late payment of rent. Whatever might have been the case in the past, today tenant eviction can be undertaken relatively quickly and smoothly – providing you make sure you comply with all required legal processes.

You should never, of course, use any form of direct or indirect threat with your tenants, unless it conforms to the law.

For example, formally notifying them of your intention to seek an eviction notice might be considered to be legal at the appropriate stage. By contrast, refusing to attend to an emergency repair until they paid your rent arrears might not be legal.

We are pleased to accept a wide variety of payment methods, including some of the most popular in use today.

That includes the following options:

• credit cards – carrying most of the major market brands (excluding American Express);
• bank debit cards – these essentially involve the payment coming directly out of your bank account;
• cheques.

We recognise that in tough economic times, paying for your insurance premium in one go is not always easy. Many people may also try to regularise and manage their expenses to coincide as far as is possible with their income.

That is why we may outline to you, offers and opportunities for paying your premium through what are effectively instalments.

Note that if you do use any form of credit facility in order to pay insurance premiums, you may incur various forms of interest rate and funding charges. In some cases, the providers of credit may also wish to perform a credit reference check on you before advancing you any of their facilities.

We wish to make clear that we are not qualified to offer you financial advice. However, it might typically be more cost-effective to pay your premiums in one go rather than to borrow money and pay interest on that borrowing.

If you have an alternative payment option you would like to discuss with us, please do not hesitate to get in touch. Where it is humanly possible to do so, we will always try to be flexible to accommodate our customers’ requirements.

Dealing with pests in a property can be a frustrating and sometimes alarming experience for landlords and tenants alike. From rodents to insects, pests can cause damage, health hazards, and discomfort. However, determining who is responsible for addressing pest issues in a rental property isn’t always straightforward. In this blog, we’ll explore the responsibilities of landlords and tenants regarding pest control.

Understanding landlord responsibilities

As the owner of the property, landlords have certain legal obligations when it comes to maintaining a safe and habitable living environment for tenants. These responsibilities include ensuring that the property is free from hazards and infestations, including pests. Landlords must:

• provide a pest-free environment: Landlords are responsible for ensuring that the property is free from pests at the beginning of the tenancy. This includes conducting regular inspections and taking necessary measures to prevent infestation;

• take prompt action: If pests are discovered during the tenancy, landlords must take prompt action to address the issue. This may involve hiring professional pest control services to eliminate the infestation.

Plus, landlords must keep on top of repairs and maintenance. As the landlord of the property, you are responsible for the structure and fabric of the building, toilet facilities and drainage, utilities and any fittings.

This basic responsibility is likely to be made clear in the tenancy agreement and is, of course, the basis on which insurance for landlords makes provision for safeguarding the structure and fabric of the let property.

Landlords are responsible for repairing any structural issues or entry points that may be contributing to pest problems, such as cracks in walls or gaps around doors and windows. If pests are getting into the let property because of holes in the wall, damaged sewer pipes, or some other structural defect, therefore, it is the landlord’s responsibility to tackle the pest problem by repairing the building.

You might need to fix pipes, brickwork, doors or skirting boards if mice or rats have chewed through them, for example.

Landlords have a particular responsibility for repairing as a matter of urgency any damage that has been done to electrical wiring – failure to do so might not only land you in trouble with Health and Safety Legislation but might even invalidate your insurance.

Tenant responsibilities

While landlords bear the primary responsibility for maintaining a pest-free property, tenants also have a role to play in preventing and addressing pest issues. Tenants should:

• report pests promptly: Tenants should report any signs of pests to the landlord or property management as soon as they become aware of them. Prompt reporting can help prevent the infestation from spreading and causing further damage;

• maintain cleanliness: Tenants are responsible for maintaining cleanliness and hygiene within the property, as poor sanitation can attract pests. This includes proper disposal of food waste, regular cleaning, and keeping living spaces clutter-free. For example, if the infestation of pests is caused by the tenant’s lifestyle or living habits – such as failing to deal properly with rubbish or not clearing away food scraps – the responsibility is the tenant’s and he or she must deal with it;

• co-operate with pest control measures: If pest control treatments are necessary, tenants should cooperate with the landlord or pest control professionals by following any instructions or guidelines provided.

Resolving disputes

In some cases, disputes may arise between landlords and tenants regarding pest control responsibilities. It’s essential for both parties to communicate openly and attempt to resolve the issue amicably. Keeping records of communications and any actions taken can help resolve disputes more effectively.

Conclusion

In the UK, the responsibility for pest control in rental properties primarily falls on landlords, who must ensure that the property remains free from infestations and hazards. However, tenants also have a role to play in preventing and reporting pest issues promptly. By understanding their respective responsibilities and working together, landlords and tenants can maintain a safe and comfortable living environment for all parties involved.