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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 12th 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 ÂŁ1,100 or an additional ÂŁ90 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 ÂŁ1,220 per month – with a range from ÂŁ2,119 in London to ÂŁ695 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 26th 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 26th 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 28th 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.

Maintenance is something to think about throughout the year for any property owner. Only by keeping your home in a good state of repair can you get optimum enjoyment from it and maximise its capital value. Regular home maintenance also allows you to spot or get on top of any problems before they potentially become something major.

Keeping your property in a good state of repair, too, is typically a condition of your property insurance.

With the month of March now upon us, here is a checklist of some of the home care tasks to which you might want to turn your attention. They fall neatly into three broad categories – essential safety checks, scheduled maintenance, and those spring cleaning jobs that help to usher your home into a bright new season.

Safety first

Safety is a priority, of course, so the following simple tasks can be considered essential first steps:

Smoke alarms and CO detectors

  • smoke alarms and carbon dioxide detectors are only as good as their last test – so make sure to carry one out right now. In fact, many sources recommend you check your alarms weekly or once a month at the very least;
  • do it by pressing the button on the casing and holding it down until you hear the loud siren emitted by the device – and also remember to replace the battery annually;
  • safety equipment manufacturers Kidde recommend that you replace these essential safety devices at least once every five to ten years – along with any carbon monoxide (CO) detectors every seven to ten years;

Safe electrics

  • during the winter months, your electrical outlets probably came in for more than their usual fair share of use – as those appliances that are no longer needed can be unplugged, check that none of the outlets or circuits was overloaded or poses a risk of shorting or other disruption of supply;
  • if you have young children in the house, make a modest investment in some safety covers for electrical outlets to discourage curiously prying little fingers;
  • check when you last had your electrics tested – it is recommended that homeowners have them professionally checked every ten years, while landlords should have them checked every five years advises the Skills Training Group;
  • landlords are legally bound to carry out such inspections at least once every five years and a copy handed to the respective tenants.

Scheduled maintenance

Remember that effective maintenance relies on a steady schedule and that it doesn’t all need to be done all at once. Even so, March is an ideal month in which to start the ball rolling as your home transitions from the gruelling punishment of winter’s elements to the quieter, balmier days of spring.

Your maintenance schedule for the month might therefore include the following tasks:

The roof over your head

  • if there’s one part of your home that needs the utmost attention in your maintenance schedule it’s the roof – it’s what provides the only shelter for the whole building, after all – so, check for any loose, slipped, or missing tiles;

Rainwater goods

  • an equally essential maintenance task is the clearance of all the gutters and downpipes – the rainwater goods – of the debris that is almost certain to have accumulated during the winter storms;

Damp and condensation

  • keeping the rainwater goods clear of debris plays a key role in discouraging the penetration of water and damp – through the roof, gutters, or even the brickwork of your home;
  • damp and condensation can quickly escalate so that you have problems with mould on the interior walls – the heavy showers that are often experienced in springtime will only exacerbate the problem;
  • these problems can prove very stubborn to remedy, so prompt action is essential – not only to protect the structural integrity of your house but also to safeguard the health and wellbeing of your family;

Windows and doors

  • the winter weather might also have found its way through gaps in your windows and doors – letting in the wind and rain;
  • now is the time to tackle those gaps with the appropriate fillers – and touch up any repairs with a protective coat or two of paint;

Central heating

  • your boiler – and the entire central heating system – is likely to have been pressed into more or less continuous service during the winter months;
  • now that the weather is warming a little and you have the chance to shut it down for a while, it is time to commission a full-scale service so that you can safely leave the system until you next need it the most come the autumn and winter;
  • annual boiler inspections are typically a condition of your home and landlord insurance.

Spring cleaning

It’s no accident that the Great British Spring Clean – organised by Keep Britain Tidy – runs from the 15th until the 31st of March 2024.

The month comes in like a lion and goes out like a lamb, they say. In the meantime, therefore, you have the time to start the spring cleaning that will spruce up the whole home and make it especially welcoming to family and friends:

The front lobby

  • start your spring cleaning at the entrance to your home – it’s in the hallway at the front door where winter coats, macs, wellington boots and the like are all likely to have been left;
  • put them away until next year and you’ve immediately signalled the start to sunnier, drier, and altogether warmer days ahead;

Lighten-up

  • you might take a similar approach to the heavier-duty deep-pile rugs that kept you warm throughout the winter months and replace them with lighter flat-weave coverings in natural fibres;
  • in the bedroom, that is likely to mean switching the winter-togged duvet for a lightweight summer one;

Dusting

  • as the lively beams of Spring sunlight are welcomed into your home, there’s a risk they’ll highlight the dust and cobwebs left over from the dismal Winter;
  • take your duster and a vacuum cleaner, therefore, to those inaccessible ceiling corners and skirting boards;

Open to the outside

  • March marks a transition from a Winter spent indoors to the promise of a Summer outside;
  • so, you might want to take this opportunity to get things ready for that move to more activities outside – blow the cobwebs off the lawnmower and oil those shears, therefore, and begin to get the garden into shape;

A view from the patio

  • you’ll want to sit back and admire all that hard work, of course, so scrub the winter’s grime and detritus from the garden furniture, hose down the patio, and launder the soft furnishings.

Home maintenance in March is one of those times when the chores are the most welcome – getting ready for that reawakening of the coming months is bound to put a spring into the stride of your maintenance efforts.

Further reading:  UK property maintenance tips and Spring property maintenance tips.

Whether you are a homeowner or landlord, one of the biggest assets you’re ever likely to own is your property. It is hardly surprising, then, that the value of that property – and the factors that may affect it – remains a critical consideration.

So, let’s make a brief review of the six principal issues that (reportedly) can affect the value of your property.

1. Energy efficiency 

It seems that every other media story about the homes we live in features some reference or other to energy efficiency and broad questions of sustainability.

It is no accident, therefore, that a story in Landlord Today on the 29th of January 2024 explores the issue of energy-efficient homes in more detail. Indeed, the story asserts that any home that is not energy efficient is likely to be subject to a sharp decrease in its value.

One of the principal objections raised by some homeowners and landlords about making their property more energy efficient is the cost. Yet, as we explained in our article entitled “How to save even more money on your energy costs” energy efficiency is, in fact, the route to reduced expenditure on fuel bills.

2. Location

“Location, location, location” – it’s the well-worn catchphrase of estate agents the world over. And for good reason. It’s the key to any property investment rationale, stress property specialists Beech Holdings.

It is easy to see why the location of a property is frequently the single most critical driving force in determining its value. Location is a prime consideration for any buyer, therefore, and you may also consider the ease of accessibility to other places and to your overall lifestyle.

3. Connectivity

During the restrictions, lockdowns, and homeworking upsurge during the recent Covid-19 pandemic, it was hardly surprising that reliable and efficient connectivity at home became the number one priority – especially, it seems, for renters, according to the Property Notify website at that time.

The issue remains a particularly hot topic and features in a major annual conference and exhibition entitled the Future of UK Connectivity – it is next scheduled to take place at London’s ExCel centre from the 11th until the 12th of September 2024.

4. Transport

Access to reliable transport links is frequently cited by tenants on the lookout for property to rent. If you are a homeowner especially concerned about curbing your reliance on the motor car, your valuation of a property may also be influenced by the availability of good transport links.

A fact sheet prepared by Homes England and published on the 2nd of November 2023 also recognised the importance of transport infrastructure and services in the provision of new homes, along with the capacity of any current public transport services and of the pedestrian, cycling, and road network.

5. Nearby amenities

Wherever you intend to set up home – whether as an owner-occupier or tenant – the proximity of local amenities will help to determine the value of any property.

In a posting dated the 9th of October 2023, the online property listings website Good Move mentioned the heightened appeal of properties closer to local amenity hubs compared with those in more remote locations. So, homes that are closer to the shops, schools, green spaces, restaurants, pubs, and community centres are likely to win you over quicker than more isolated properties.

6. Crime

If there’s one thing you’re likely to value over and above the price of a property it will be your ability to enjoy it in peace, free from any constant worries about the local crime rate.

Indeed, property specialists Spot Blue assert that crime rates for any particular area are critical to investment decisions. There is a wealth of resources to help you determine the potential impact of crime on property values in your area. These include the interactive Crime in My Area website developed by security firm ADT.

Here is a round-up of some of the latest UK property news stories …

NRLA: Growing the PRS would boost Government coffers by ÂŁ10bn

An assessment conducted by the National Residential Landlords Association (NRLA) recently predicted that Treasury revenues could be increased by ÂŁ10 billion if the government pursued policies designed to increase the stock of housing in the private rented sector (PRS).

The current shortage of homes for rent is illustrated by the fact that 11 hopeful tenants apply for every vacancy, says the NRLA.

If the government scrapped the additional 3% stamp duty tax that landlords have to pay on every property investment, it would make for 900,000 more homes for rent in the PRS. That, in turn, would increase incomes and corporation tax takings by the Treasury – bringing in more than an extra £10 billion each year.

House prices begin 2024 on a more upbeat note

After a year of only faltering performance, average house prices in the UK registered a 0.7% increase in the first month of 2024 (it’s best since the same time last year), according to the index maintained by the Nationwide building society. That takes the annual fall in average prices during the past 12 months to just 0.2%.

The modest increase in the performance of the housing market suggests that homebuyers are finding purchases more affordable, says the building society’s Chief Economist.

Even so, the struggle to save a sufficient deposit remains a significant burden – making any significant upsurge in the market unlikely.

Where are the 10 happiest places to live in Great Britain?

For those fortunate enough to be able to make a move, however, the online listings website Rightmove recently published its annual Happy at Home Index – a register of those places in the UK that its residents have voted the “happiest”.

Rated the top three happiest places to live were Richmond upon Thames in outer London, Winchester in Hampshire, and Monmouth in South Wales.

Earning their stripes in the remaining top ten were:

  • the commuter town of Wokingham to the south west of London – in fourth place;
  • Cirencester in Southwest England;
  • Skipton in Yorkshire;
  • Hemel Hempstead in outer London;
  • Kensington and Chelsea in inner London;
  • St Ives in Cornwall; and
  • Hexham in Northeast England.

Rightmove: February is the best month to list a home

If you are looking to put a property up for sale, it helps to know the best month in which to make that listing. According to a story in The Standard newspaper on the 25th of January, February is the best month.

Homes listed in February are taking an average of just 51 days to attract a buyer, says the newspaper – a day more quickly than those first advertised in the month of March. What is more, nearly two out of every three homes (66.4%) advertised in February succeed in securing a purchase. That compares with 66.3% of those listed in March.

The newspaper also suggested that activity in the housing market is also picking up somewhat, with an 8% increase in the number of prospective buyers contacting estate agents compared with the number doing so in February last year. At the same time, there has been an 11% increase in the number of homes listed for sale.

At Cover4LetProperty, we pride ourselves on only using the highest industry strength website security measures to keep your personal data safe at all times. This includes both your application and policy details as well as when you make a payment online.

Our payment systems are secured by Secure Sockets Layer (SSL). This is a protocol for enabling data encryption (which means that the data is coded) and is most commonly used to protect communications between web browsers and servers.

What this means in layman’s terms is that your details are safe with us, and making a payment online is secure.

Further reading on making payments online securely is available from the BBC here.

To begin to answer this question it might be helpful to look at the use to which two different types of property are put:

Home insurance

  • a home is where you live – you might be an owner occupier or you might be a tenant;
  • if you own the property, you are likely to arrange home insurance to cover both the structure and fabric of the building itself and of the contents you own;
  • if you are a tenant, the landlord is typically responsible for insuring the building, but you are still likely to need contents insurance to protect your own belongings;

Landlord insurance

  • let property is owned by a landlord as a business proposition – the dwelling is occupied by tenants who pay the landlord rent for the privilege;
  • the landlord is likely to want to protect his business investment with landlord insurance, including safeguards against loss or damage to the building and any contents he owns; whilst
  • tenants remain responsible for any insurance cover of their own possessions.

At its simplest, therefore, a home is a home, whilst let property is a business asset.

So why is the one more expensive than the other?

To understand why landlord insurance is typically more expensive than standard home insurance, it might be helpful to go back to the basics of insurance itself.

Essentially, insurance is about risk and a calculation of the probability of loss or damage being suffered by the insured item or items. Risk is assessed with respect to the likelihood of loss or damage leading the insured to make a claim, since the settlement of claims paid out to the insured represent a liability for the insurer.

In order to cover the financial liability of having to settle customers’ claims, the insurer charges premiums that reflect the assessed risk of having to pay out in the settlement of a claim.

How it works

A comparison of the ways in which home insurance and landlord insurance might throw further light on the matter – or you might want to consult specialist providers, such as Cover4LetProperty, for the professionals’ view:

Home insurance

  • homes are vulnerable to loss or damage as a result of a variety of perils – fire, flooding, impacts, storm damage and vandalism, for example, to name but a few;
  • these and other perils are typically included in building insurance, with the structure itself usually insured up to the cost of completely clearing the land, associated professional fees and reconstructing it in the event of a major incident – and where building costs may be entirely different to the price at which the property was purchased;
  • contents insurance also covers theft and may include the risk of accidental damage, with claims settled either on the basis of new for old replacement or after the deduction of an amount for depreciation or normal wear and tear;
  • home owners have a duty of care towards members of the public, neighbours and visitors and for that reason home insurance typically includes indemnity against property owner’s liability claims;

Landlord insurance

Renting out property is considered a business activity. Landlords are essentially running a small business, and the associated risks and responsibilities are reflected in the cost of insurance. Home insurance is designed for owner-occupied properties, which generally have fewer risks. At first sight it may seem that landlord insurance is designed to cover effectively the same risks;

  • whilst it is true that the core element of landlord insurance is also likely to be protection of the structure and fabric of the building, the risks are of a different nature and order if the occupants are tenants rather than owner occupiers – and the insurer’s calculation of this difference is reflected in the higher premiums likely to be attracted to insurance for landlords;
  • similarly with contents insurance, where insurers take the general view that an owner occupier is more likely to take care of and prevent loss or damage to the contents of a property than some tenants – the risks are assessed to be higher and this is reflected in the price of the premiums;
  • landlords face unique risks that homeowners typically do not. Renting out a property introduces additional risks, such as damage caused by tenants, loss of rental income, or legal liabilities associated with being a landlord;
  • property owner’s liability in the case of a landlord is even more critical that in the case of the owner occupier – the landlord has an additional duty of care to take all reasonable steps to prevent injury to or loss or damage to the property of his tenants. Landlords may be held liable for injuries or damages that occur on the rental property, and the insurance needs to provide adequate protection;
  • properties used for rental purposes may experience more wear and tear compared to owner-occupied homes. The increased occupancy and turnover of tenants can contribute to higher risks of damage and incidents, leading to higher insurance premiums;
  • since let property is at the heart of a business enterprise driven by income from rents, landlord insurance typically covers the risk of interruption of that income stream in the event of a major insured incident which leaves the property temporarily uninhabitable;
  • landlords may face risks related to tenant behaviour, such as property damage, failure to pay rent, or legal disputes. Landlord insurance often provides cover (either as standard or as an add-on such as residential let legal expenses and optional rent protection insurance ) for these specific risks, contributing to the higher cost.

Finally, insurance pricing is influenced by market conditions, including the overall risk landscape, claims history, and economic factors. If there is an increase in claims or changes in risk factors, insurance premiums may adjust accordingly.

In summary, it’s important for landlords to carefully assess their landlord insurance needs and choose a policy that provides adequate cover for their specific situation. While landlord insurance may typically cost more than home insurance, it offers protection tailored to the unique risks associated with renting out property.

In the clamour of competing headlines, property news continues to steal the limelight for many of the UK’s landlords. By keeping abreast of the latest changes, you can stay ahead of the game and help ensure that your buy to let business remains profitable.

So, let’s take a brief look behind some of those headlines.

Court rules Section 21 invalid without a Gas Safety Certificate

Any landlord should know of their responsibility for sharing with tenants the results of the obligatory annual gas safety inspection – after all, the requirement features in the latest version of the How to Rent handbook that landlords have to give to all new tenants.

But that annual gas safety certificate could prove even more critical to a landlord’s freedom of action following a decision of the County Court in Hastings, revealed a story by Propertymark on the 9th of January.

The case in point involved a landlord who installed a new gas appliance – a gas-fired boiler – just a day after new tenants moved in. Although the gas engineer who installed the boiler made sure that it was functioning safely, no gas safety certificate was issued.

When the landlord subsequently attempted repossession of the property by way of a Section 21 notice, the court ruled in the tenants’ favour that the notice was ineffective because the tenants had not been shown a copy of a valid gas safety certificate following the installation of the new appliance.

House prices fall 1.8% over the course of 2023

In its retrospective of 2023, Nationwide Building Society revealed that average house prices fell by 1.8% during the course of the past 12 months.

Its house price index for the year showed that average prices fell across the whole of the UK – where those in East Anglia dropped by as much as 5.2% – with only Scotland and Northern Ireland recording price increases.

Looking ahead to the new year, Nationwide is unable to foresee any marked improvement or activity in the underlying housing market. This is despite a gradual lowering of mortgage interest rates which has encouraged buyers even in the face of poor consumer confidence in the rest of the economy.

Scottish landlords want to sell up

In an article on the 8th of January, the website for residential agents, The Negotiator, reported that 100% of Propertymark member landlords in Scotland were thinking of quitting the buy to let market and selling their rental properties.

Landlords across the UK as a whole have been tempted to sell up and it is in Scotland, in particular where the buy to let bubble seems finally to have burst.

Commenting on the exodus of Scottish landlords, the Guardian newspaper on the 13th of November had pointed out that during the past year, rents have risen (by as much as 5.1% despite the rent cap that is in force in Scotland). The increases have been in response to harder times for landlords who struggle with steeper mortgage interest rates and more punitive tax regimes. Those landlords still in business are operating in a market with fewer rental properties available – so rents inevitably rise still further.

Landlords forced to take a hit on costs by asking lower rents

Further signs of the difficulties facing landlords were revealed in a story in Landlord Zone on the 9th of January.

It noted that the dwindling stock of rental properties had indeed driven steep increases in rent levels towards the end of 2023. Outside of London, rents in other parts of the UK rose by as much as 10% while those in the capital went up by around 6%. Further increases of 5% and 3% have been forecast for the remainder of 2024.

Despite these trends, however, landlords continue to struggle to maintain a profitable business – they still have (higher) mortgage repayments to make, of course. In order to attract dependable tenants, therefore, Landlord Zone has detected a marked number of landlords prepared to drop the price of their initially advertised rent. Such rent reductions have been recorded among 23% of all properties, according to the journal, compared with 16% of rented dwellings at the same time in 2023.