“Safe as houses” the saying goes. But there’s an important qualification you might want to consider if you’re planning on leaving your home or let property unoccupied for longer than a month or so. These practical and financial considerations could leave you with substantial unexpected bills – and might even devalue the market value of your home.

So let’s take a look at some of the hidden things you need to know when you have an empty property – including the remedies that point to the importance of unoccupied property insurance.

Maintenance and repairs

When you’re living there, you’re constantly reminded of the need for any essential repairs and maintenance your home needs. But it’s a different picture when you’re away for any length of time. If essential repairs and maintenance go unnoticed because the property is unoccupied, the cost of eventually putting things right will have escalated of course.

Even small, unattended repair jobs – such as that dripping tap, broken windows, or an overgrown garden – may require costly intervention when you return to your home. All these issues are likely to be made that much worse during the adverse weather of a British winter, when additional problems such as rising damp or frozen water pipes may occur.

If your property is not well-maintained – if it looks neglected or abandoned because you have needed to leave it unoccupied, it could fall in market value or become more difficult to sell or to rent. At the very least prospective buyers might be put off by the extent of renovation required and force you to drop your asking price.

Security and vandalism

Even if you are up to date with the repairs and your home is well-maintained, it is still vulnerable to the unwelcome attention of thieves, vandals, or even squatters while you are away for any extended period.

Making good the actual or attempted break-ins of those intruders can be costly indeed, so you might want to step up the security measures for your home – especially if it is to be left empty for any length of time.

Our blog – Technological solutions for monitoring unoccupied properties – and Guide to Protecting your Property include a look at the range of security measures you might consider for your home or any let property that is left untenanted for longer than a month or so.

Council Tax

The rules on your liability for Council Tax (in England) are somewhat complicated and are determined by the relevant local authority, explains the government website.

Typically, you will have to continue to pay Council Tax even when your home is unoccupied. If your home is empty and unoccupied for longer than a year, councils are authorised to charge a premium rate on top of the regular Council Tax and this premium can be up to 4 times the normal rate if the property has been empty for longer than ten years.

Councils may grant a discount on the rate payable if your home is unoccupied while major repairs or structural work is in progress.

There are also exemptions from the need to pay Council Tax – including, for example, those homes that are unoccupied while subject to probate proceedings.

The importance of insurance

The additional vulnerabilities faced by your home when it is empty for any length of time all point to the importance of insurance (except for the need to pay Council Tax, of course).

That importance is made all the more critical because most insurers will severely limit – or even cancel altogether – the regular building and contents insurance once your home has been unoccupied for longer than 30 to 45 days (the exact interval varying from one insurer to another). Insurers limit the cover available simply because of the additional risks to your home when it is empty.

What that means, of course, is that you will shoulder a considerable financial burden if any theft, loss, or damage occurs while you are away.

To indemnify yourself against that risk, a standalone policy – unoccupied property insurance – is available to restore the protection your property will need when it stands empty. Contact us today to discuss how our empty property insurance can help protect your home against unexpected events.

The highlight of the most recent UK property news headlines was, of course, the historic Autumn Budget by the country’s first female Chancellor of the Exchequer.

Let’s take a brief look at the main points from the Budget likely to affect the housing market, together with other leading stories of the month.

Property and the Autumn Budget

The principal decisions affecting both homeowners and landlords are:

Personal tax thresholds

• a freeze on the current personal tax thresholds for Capital Gains Tax (CGT) and Inheritance Tax (IHT) until the 5^th of April 2030;

SDLT

• the Stamp Duty Land Tax (SDLT) surcharge on the purchase of second properties (holiday homes and buy to let rented accommodation, for example) is increased from the current 2% to 5% with immediate effect;

Right to Buy

• the discounts previously available under the retained Right to Buy scheme for the purchase of a tenant’s council home have been slashed in value;

New homes 

• housing policies are a feature of the new government, and the Chancellor has promised investments of more than £5 billion for the building of new homes;

• in addition, a further £3.1 billion is directed towards the Affordable Homes Programme, some £3 billion to help guarantee an increase in the building of new homes, and support for small housebuilders.

UK property sales hit a high

Against a background of more favourable mortgage interest rates and a brighter economic outlook, property sales are enjoying a surge in activity last seen four years ago, reported the Buy Association recently.

In October, sales were 25% up on the same month last year while the demand from house hunters also rose by 23%.

The supply of new properties is also up – by 13% – over the same months last year, reflecting an 11% increase in the volume of homes for sale. That increase in supply has helped to hold the inflation in house prices to just 1%. 

Zoopla House Price Index: October 2024

The listings website Zoopla, on the 28^th of October, echoed many of Rightmove’s findings, namely:

• thanks to a boom in sales activity (the highest in four years), sales in the pipeline are currently 30% higher than this time last year and are worth an estimated £113 billion;

• an increased supply of homes for sale and the affordability issues faced by some prospective buyers puts a brake on the inflation of house prices – currently holding at around 1%;

• because rents have been rising and mortgage interest rates falling, encouragement has been given to first-time buyers over renters – with the former now responsible for 36% of all sales;

• nevertheless, the Budget’s changes to Stamp Duty charges mean that 20% more of first-time buyers will be paying the tax.

As Zoopla says, it is turning into a “bumper year” for sales in the housing market. Incomes have risen. The competition among mortgage providers has resulted in lower rates of borrowing, driving forward the biggest upsurge in sales since the end of Covid restrictions.

Rightmove: 5 reasons it’s a buyers’ housing market

In an article on the 21^st of October, the online listings website Rightmove advanced five reasons why there is currently a buyers’ housing market:

1. while house prices have gone up, prices have grown more slowly than average in October compared to what is expected this time of year;

• asking prices have had to be more competitively pitched;

• there are some 12% more properties currently on the market than a year ago;

• sellers are finding it takes longer to sell a home (the national average time for homes to sell is currently 61 days); and

• some prospective buyers continue to face affordability issues.

At first glance, there might seem little difference between a dwelling in which the owner occupier lives and one that is let to a tenant – despite the difference in tenure, both are homes, with a building and its contents broadly vulnerable to similar risks and perils.

As far as mortgage lenders and insurers are concerned, however, there is a world of difference.

Mortgages

A standard residential mortgage arranged by a prospective owner is different to a buy to let mortgage sought by a landlord.

The key differences between a residential mortgage and a buy to let mortgage are:

Purpose

1. • Residential mortgage: For buying a home to live in.
   • Buy to let mortgage: For purchasing a property to rent out to tenants.

Loan criteria

1. • Residential mortgage: Based on your personal income.
   • Buy to let mortgage: Primarily assessed on the rental income the property will generate.

Interest rates and deposit

1. • Buy to let mortgages typically require a larger deposit (often 25%) and higher interest rates.

Repayment type

1. • Many buy-to-let mortgages are interest-only, while residential mortgages are often repayment types.

These differences are further reflected in the way the two different types of mortgage are regulated. The owner occupier – who stands to lose his home if things go wrong – has the full protection of the Financial Conduct Authority (FCA); in many cases, a landlord does not.

Insurance

The distinction drawn by mortgage lenders is one that is also followed by insurers – the risks and perils to which an owner-occupied home is exposed and those of tenanted premises are significantly different.

Standard building and contents insurance is appropriate for the owner occupier, therefore, but specifically written landlord insurance is necessary if the dwelling is let to tenants. The use to which the dwelling is put, determines the type of insurance required

The distinction is very important to any property owner looking to safeguard his or her investment by arranging insurance cover.

Can I use home insurance for my buy to let property?

No. If the owner of buy to let property has mistakenly arranges standard home insurance (suitable for the owner-occupier) any claim may be rejected on the grounds that the premises are in fact occupied by tenants and the policy will become void.

Not only that, but your mortgage lender could ask you to repay the outstanding mortgage amount immediately, as you will have breached the terms of your contract with them in not having the correct type of buildings insurance.

If you are the owner of tenanted property, therefore, the only suitable cover is landlord insurance.

This applies even if you are an accidental landlord – the owner of property that you decide to let but without consciously seeking to build a business as a buy to let landlord.

Further reading: Why is landlord insurance more expensive than home insurance?

So, what is suitable landlord insurance – what does it cover?

Although all insurance policies of course vary in their details from one policy to another, insurance for landlords typically has at its core:

• cover for the structure and fabric of the building itself against such potentially major incidents as fire, flooding, impacts, vandalism and theft;

• similar cover for those contents of the let property that are owned by the landlord (tenants’ possessions need to be insured separately by the tenants concerned);

• in the case of some landlord insurance policies, it may also be possible to safeguard against malicious damage caused by the tenants themselves.

An equally important component of landlord insurance is public liability indemnity – protection against the potentially very costly claims made by tenants, their visitors or members of the public who may have suffered injury or had their property damaged because of the landlord’s breach of his duty of care.

This element of cover is necessary because of the landlord’s particular responsibility for the safety of tenants, visitors and members of the public. If it is shown that the landlord’s actions – or failure to act – amount to negligence in his duty of care, a substantial claim in compensation may follow.

As already mentioned, the landlord – and even the accidental landlord – is effectively engaged in a business. Business income is generated through rents charged, and the aim is to keep that income at least equal to the costs and expenses (including any mortgage repayments) incurred in letting the property.

For that reason, if the let premises becomes temporarily uninhabitable following an insured event, landlord insurance typically may offer compensation for the resulting loss of rental income.

Additional let property insurance options

There are also additional elements of landlord insurance cover you may wish to invest in such as:

• Accidental damage insurance. This is optional but may be valuable if you’re concerned about accidental damage to the property or its contents, such as a broken window or stained carpet.
• Residential Let Legal Expenses and Optional Rent Protection. This can cover losses if your tenant fails to pay the rent as well as help meet the expenses and costs involved in pursuing any civil dispute with your tenant or defending any claim that may have been made against you as the landlord.

Next steps

Ensuring you have the most suitable landlord insurance is essential. If you have any questions relating to landlord insurance or to get a quote, please do not hesitate to telephone us on 01702 606 310. Our UK-based team will be very happy to help you with any queries.

The honeymoon’s over. A new Labour Party has been in office for several months now and the hard work of practical government has begun in earnest. What is this likely to mean for the UK property market and related issues?

Let’s take a look behind some of the more recent news headlines and find out.

Shelter demands changes to make Renters Rights Bill tougher

The successor to the previous government’s Renters’ Reform Bill is the only slightly renamed Renters’ Rights Bill – but the latter appears to go somewhat further, as far as the protections for tenants are concerned.

Even so, said Housing Today on the 2^nd of October, the housing charity Shelter is pressing the government to make the current bill still more favourable for tenants. In particular, it wants:

• a two-year “buffer” period at the start of every tenancy during which any “no fault” eviction is barred – similar to the rules already in place in France and Germany where there is greater security and stability for longer tenancies;

• referring again to the example of Germany, Shelter also wants to see annual rent increases limited either to the Consumer Price Index (CPI) rate of inflation or growth in wages (whichever is the lowest);

• landlords should be limited to requesting a maximum of one month’s rent in advance; and

• situations in which landlords request a “guarantor” should be limited to those where there is significant doubt about the prospective tenant’s ability to afford the rent.

What’s the average UK energy bill?

The website Rightmove has updated its regular analysis of average energy bills in the UK according to the size of the property and its current energy performance certificate (EPC).

Not only does the research show how much the average household is paying for the energy consumed but underscores yet again the savings that can be made by upgrading the energy efficiency of a home.

Taking the example of a humble one-bedroom flat, for example, the energy bill for one that is so poorly insulated that it rates a meagre EPC of G is a whopping £3,788 a year. If only the owners could boost the energy efficiency all the way up to an A rating, the annual bill would drop to just £605.

At the top of the range, of course, the savings are even more marked. A 5-bedroomed detached house that has a G-rated EPC will cost an average of £10,097 a year to heat. If it were to be upgraded to an A rating that annual bill would be a measly £831.

The overall average is somewhere in between. Rightmove cites the example of a 3-bedroom semi-detached house with an EPC of D. Here the average expenditure on energy is £2,311 a year (if only it had an A rating the bill could be slashed to just £540 annually).

Nationwide House Price Index: September

September saw the biggest rise in average house prices in two years, according to the House Price Index compiled by Nationwide.

The 0.7% increase in average house prices during September translates into an annual increase to date of 3.2% – the highest it has been since November 2022. The increases are likely to have resulted from salaries growing at a faster pace than house prices and a general downward trend in mortgage interest rates.

Regionally, average house prices rose fastest in Northern Ireland – up 8.6% in this the third quarter of the year. East Anglia bucked the national trend by recording a 0.8% fall in average prices.

21 people bid for every rental property, and supply remains a major problem, so rents are pushed higher

The online listings website Zoopla in a posting on the 13^th of September painted a dismal picture for tenants looking to rent a home.

It noted that although the demand for rented accommodation has fallen off somewhat, there are still an average of 21 applicants for every rental vacancy – more than twice the number of prospective tenants pre-pandemic.

Indeed, there are 24% fewer homes for rent than before the pandemic and investment by landlords in the private sector is sluggish, to say the least. The Autumn Budget could prompt still more landlords to quit the market altogether, suggests Zoopla.

With demand continuing to outstrip supply, rent levels continue to rise – in some metropolitan areas by double digits.

The builders are in to carry out some long-awaited renovations to your home. But in all the excitement to get the job finally done, are you at risk of overlooking a potentially critical insurance gap?

Any work likely to affect the structural integrity of the building clearly carries risks. Yet these may also come at a time when your home or a property you let is temporarily unoccupied – with only the builders at work during the day – an occasion when most insurers may regard your existing cover as inadequate or having lapsed entirely.

This typically comes after your home has been unoccupied for longer than 30 to 45 consecutive days – the exact interval varying from one insurer to another.

Your current home insurer is likely to be concerned about several main sources of increased risk during the renovations:

• although the builders may be there most days, your home remains empty at night and when they’re not there, so the property is effectively unoccupied – and an empty property is more vulnerable to loss or damage than one that is continuously occupied;

• many types of building work – including renovations – may impact the structural integrity of your home; and

• while the work is in progress, you will likely have on-site materials and equipment you bought that are more vulnerable to theft or damage.

Renovation insurance

To fill that potentially very expensive gap, you are likely to need standalone cover that is appropriately named renovation insurance/property undergoing works.

This is typically a form of unoccupied property insurance cover specifically designed to cover the period while renovation works are in progress and the property has no one living in it. The renovation insurance policy may be flexible in terms of how long it runs for – such as for 3, 6 or 9 months.

What is renovation insurance/insurance for properties undergoing works while unoccupied?

Renovation insurance is a specialised type of insurance designed to protect properties undergoing renovation, construction, or refurbishment work. Standard home or landlord insurance policies often do not cover the increased risks associated with renovation projects, such as damage to the structure, theft of building materials, or accidents involving contractors.

Renovation insurance may be tailored to ensure that new building works and any impact they may have on the structural integrity of your home are protected against the risks of loss or damage to the building.

Typically it may also provide cover against the risk of theft, loss or damage to building materials, plant, or equipment you may have bought or hired for the building works. This may also extend to indemnity for your public liability for third parties who are injured or have their property damaged as a result of the renovation works.

Won’t the builders have their own insurance?

Yes, they should have contractor insurance. This is something you will want to leave in the proper hands of your contractor – who will need to arrange their own cover to protect against any liability claims related to the renovation work.

When all is done

You’ll be glad, of course, when the renovation works are successfully completed, the builders have packed up and moved on, and you can safely call an end to any unoccupied property insurance and renovation insurance.

Nevertheless, there remains one final gap you will want to plug. The renovation works are almost certain to have increased the capital value of your home. Following a re-evaluation, therefore, you will want to check whether you need to update the total building sum insured of your regular home or landlord insurance.

Whether you are a homeowner or landlord, unoccupied property insurance is needed by anyone who owns a property that will be left vacant for an extended period, typically more than 30 or 60 consecutive days, depending on the insurer.

Standard home insurance policies often don’t cover properties that are unoccupied for a long time due to the increased risks, such as theft, vandalism, water damage, or fire.

Here are some situations where unoccupied property insurance is necessary:

You are a landlord with a void property

If you are a landlord and your rental property is vacant between tenants for a prolonged period, unoccupied property insurance ensures the property remains protected.

You are selling a vacant home

If your home is on the market and empty while you wait for it to sell, unoccupied property insurance is vital to cover potential risks during this period.

Long-term travel or absence

Homeowners who leave their property vacant while travelling for an extended period (for work, retirement, or a long holiday) should consider unoccupied insurance to ensure their home is covered while they’re away.

Probate property

If you’ve inherited a property that will be unoccupied while you decide what to do with it—whether to rent, sell, or move in—this insurance is essential to protect it during the interim.

In all of these cases, you’ll typically need unoccupied property insurance to ensure your property remains properly protected.

Is your residential property undergoing works?

If you’re doing extensive renovations that require the property to be empty for a significant time, you’ll need a specialist type of insurance called renovation insurance to cover any risks while the work is being carried out.

What are the risks faced when a property is unoccupied?

Not only do you stand to lose rental income from your property whilst it is unoccupied, but there are increased risks to which it is exposed for the duration of that vacancy. For example:

Theft and vandalism

• when premises are empty, they attract more than their fair share of vandals, squatters, arsonists, fly-tippers and graffiti artists, eventually leading to such a decline in overall security in the area as to encourage its general decline;

Maintenance and repair

• when there are no tenants in your property, problems needing otherwise routine maintenance and repair are going to go unreported and may therefore develop into full-blown incidents – a dripping tap, for example, might soon leave the property flooded;

Weather

• the British weather is nothing if not unpredictable – and when your property is unoccupied, storm damage, high winds, ice or snow may cause problems which are again unreported and have the potential for causing considerable damage;

Infestations

• a property that is left empty and unoccupied may be at much higher risk of infestation by rodents or other pests

Property fraud

• let property and property which lies empty are two categories identified by Action Fraud as vulnerable to property fraud – if your let property is currently unoccupied, therefore, it may be doubly vulnerable to property fraud.

Insurance

For all of these reasons of heightened risk and vulnerability, insurers are likely to reassess the scope and level of cover for your property once it has been unoccupied for a certain length of time – this may typically be between 30 and 60 consecutive days, depending on your insurer and whether your property is commercial or residential, as the unoccupancy periods may be different.

Once the property has been unoccupied for the prescribed number of days, the insurer may restrict the level of cover offered or regard the policy as lapsed altogether.

Unoccupied property insurance provides standalone cover to replace your regular home or landlord insurance whilst the property remains empty.  It is likely to be essential to maintain your obligation to any buy to let mortgage lender that the property remains fully and adequately insured – including those times when it is temporarily unoccupied.

Further reading: Guide to unoccupied property.

Do you have an unoccupied commercial property?

You can get a quote for unoccupied commercial property here.

Our service

At Cover4LetProperty, we pride ourselves on offering cost-effective, quality let property and unoccupied property insurance cover for residential and commercial properties, backed up with a first class service.

When you transact with us, you are dealing with a company that has roots going back to 1946 – so you can feel confident that we are a well-established and reputable business with longevity.

And while our service is online, this is backed up with a telephone service. Once you have bought a policy, you will also have access to your own dedicated personal account handler. So, you get all the benefits of internet prices as well as a personal service.

Our professional team are always on hand (during office hours) to answer your questions or queries, so you know you are dealing with real people and not a faceless website.

Our products

Because we have been around for many years, we have forged some great relationships with specialist landlords insurers. This means that we have panel of elite insurance companies that we can search through to find what we consider is the most cost-effective and appropriate cover for you.

We have negotiated special deals as well as extra policy features and benefits that other brokers may not have access to. For example, malicious damage caused by a tenant is covered as standard – some other providers will charge you for these elements of protection.

We also have no restrictions as to whom you can let to – again, not all other providers offer this.

So, why not get a quote now online or give us a call? We’d be only too happy to help.

Landlord’s insurance (also known as buy to let insurance or let property insurance) is something a landlord should consider when purchasing a property with the intention to let it.

If you fail to purchase landlord’s insurance, you are putting yourself at unnecessary financial risk, which could result in disastrous repercussions.

Here we discuss what landlord insurance covers, why it is so important, plus other considerations.

What is landlord insurance?

Buy to let insurance is a specialised type of insurance that covers the unique risks faced by landlords. While it shares some similarities with standard home insurance, it includes additional protection tailored to rental properties and tenants.

A standard home insurance policy will not cover you if you’re renting out your property, which makes landlord insurance a vital part of being a responsible property owner.

Why do you need landlord insurance?

While landlord insurance typically isn’t a legal requirement, if you have a mortgage on the property, then in most cases you will be legally obliged to ensure you have (at the very least) adequate landlords buildings insurance to protect both you and your mortgage provider’s financial interests in the property.

Even if let property insurance is not mandatory, it’s highly recommended for any landlord. Renting out a property comes with many potential risks—damage caused by tenants, legal liability for injuries that happen on the property, or loss of rental income due to unexpected events like a fire or flood.

What does landlord insurance cover?

Landlord insurance can be tailored to meet your specific needs, and policies often come with a variety of options. It is important to note that policy features, benefits, terms and conditions can vary, so the following should be used as a guide only:

• Buildings insurance

This covers the structure of your rental property, including the walls, roof, and permanent fixtures like kitchens and bathrooms. It typically protects against risks such as fire and floods. If your property is damaged by one of these insured risks, your insurer will cover the cost of repairs or even rebuilding the property (up to policy limits of course).

A note on rebuilds costs

When purchasing landlord insurance, you will need to insure it for the reinstatement or rebuild value. The most accurate way of doing this is to have to have a structural survey undertaken. The rebuild or reinstatement value for landlord insurance should typically take in to account the following aspects:

• clearing the site;
• surveyor costs;
• architect costs;
• complying with government and local authority requirements;
• miscellaneous fees.

The Royal Institute of Chartered Surveyors (RICS) also has a rebuilding cost calculator that is free to use.

• Contents insurance

If you rent out a furnished or partly furnished property, contents insurance can cover the cost of replacing furniture, appliances, or other items that belong to you as the landlord.

Note that tenant belongings are not covered under this policy—they will need their own tenants contents insurance for personal items.

• Landlord liability insurance

Property owner’s liability comes as standard with all our landlord insurance policies. This would cover you for example, when a tenant may hold you liable for an injury which was caused within / by your property.

Without this cover, if someone should make a claim against you for loss or injury, then if the case goes to court and your tenant is awarded compensation, you will need to find this money yourself. And with court sums running in to hundreds of thousands of pounds in some circumstances, this could see you in huge financial difficulty.

• Loss of rent insurance

If your property becomes uninhabitable due to damage from an insured event, such as a fire or flood, loss of rent insurance typically will cover the rental income you would have earned during the period that the property cannot be rented out.

Landlord insurance optional extras

There are also optional extras that some landlord insurance providers will offer for an additional cost, such as, but not limited to:

Legal protection insurance

Residential let legal expenses insurance typically covers the cost of legal fees that may arise from disputes with tenants, such as eviction proceedings or recovering rent arrears. With landlord-tenant disputes becoming more common, this can be a worthwhile addition to your policy.

Rent guarantee insurance

Rent guarantee insurance covers unpaid rent (up to pre-agreed limits) if a tenant defaults on their payments. While it’s not included in every policy and if often an add-on to legal protection insurance (see above), it’s may be a valuable option if you want to protect yourself from potential financial losses due to tenant non-payment.

How much does landlord insurance cost?

The cost of landlord insurance varies depending on several factors, including the value of your property, its location, and the level of cover you choose.

Properties in areas with higher crime rates or those prone to flooding may have higher premiums. Additionally, the type of tenants you rent to can impact the cost—renting to students or tenants on housing benefits, for example, might result in higher premiums as some insurers may view these as higher-risk groups.

Our cover

With Cover4LetProperty’s landlord insurance cover there are two options available for the buildings and contents. The first being landlord’s insurance standard buildings cover for a rented property.

The second is landlords buildings and landlords contents cover (the latter being required if perhaps your investment is part-furnished or there are communal areas).

Next steps

If you have any questions, please do not hesitate to contact us on 01702 606 301 – we will be very happy to help.

Britain’s population is both growing and the age profile is getting older. These are just two of the factors contributing to an overall shortage of housing. Add in the fact that there are an estimated 700,000 empty homes in England alone, and you can see why it is important to make use of any empty property as a home – for yourself or for letting to tenants.

So, why are so many homes still empty and what is likely to be involved in returning them to valuable places in which to live?

Why are there so many empty properties?

There may be any number of reasons why a dwelling may be left empty for longer than six months:

• the property might have been inherited – solely or perhaps with other members of the family – and there is uncertainty whether to move into it, sell it or let it to tenants;

• although an empty property might have been bought with the intention of renovating it, the work has been shelved because of pressures of time or money and the necessary building work has come to a halt;

• some owners may be holding on to an unoccupied dwelling in the hope that it may realise a higher sale price in the future – or else they may be holding out for a sale at too high a price; or

• a landlord may have let the property in the past but is unable to afford the expense of those repairs and maintenance required for letting at present.

Whatever the reasons for the property currently lying vacant, any owner is likely to be well advised to ensure that it nevertheless retains the protection of adequate and appropriate insurance – in this case, empty property insurance, a niche product available from specialist providers such as ourselves at Cover4LetProperty.

Please also refer to our Guide to Unoccupied Property for more information.

Are you looking to buy an empty property?

When buying an empty property, there are several important factors and considerations to keep in mind.

1. Condition of the property

• Structural issues: Empty properties may have been neglected for some time, so check for structural damage like cracks, dampness, subsidence, or roofing issues. Commission a full structural survey to identify these.
• Utilities: Water, gas, electricity, and plumbing might be outdated or disconnected. You may need to restore services or upgrade systems.
• Security: Unoccupied properties are more vulnerable to break-ins or vandalism. Consider checking if windows, doors, and security systems are intact or need updating.

2. Legal considerations

• Ownership and Title: Ensure that there are no complications with the property’s title. You’ll need a conveyancer or solicitor to check for any title issues, restrictive covenants, or rights of way that could affect future use.
• Planning permission and regulations: If you plan to renovate or convert the property, check with the local planning authority whether the necessary planning permissions are required. Listed buildings or properties in conservation areas may have restrictions.
• Easements and boundaries: Verify property boundaries and any easements (legal rights others have to use your land, such as for utilities or shared access).

3. Surveys and inspections

• Property survey: A detailed survey (HomeBuyer’s Report or full building survey) is crucial, especially for empty properties that may have been neglected.
• Asbestos and lead: Older properties may have hazardous materials like asbestos or lead pipes. Surveyors can identify these risks, and you may need specialists to handle removal.
• Damp and rot: Empty homes may suffer from damp, dry rot, or wet rot due to lack of heating or ventilation. Look out for mould, soft wood, or unusual smells.

4. Financing an empty property

• Mortgages: Securing a mortgage for an empty property can be more challenging, particularly if the property is in poor condition. Some lenders might offer renovation mortgages, which release funds in stages as work is completed.
• Bridging loans: These are short-term loans that can be used to finance the purchase and initial renovations until the property is habitable or sold.
• Insurance: Insuring an empty property can be expensive or difficult because vacant homes are at a higher risk of damage or theft. You’ll need unoccupied property insurance, which may have stricter conditions.

5. Renovation costs

Renovating an empty property can be costly. Create a realistic budget for repairs and improvements, considering hidden costs like VAT, professional fees, and unexpected problems. Build in a contingency fee, too, for unexpected costs.

Obtain quotes from several builders for any work required. Do consult contractors early to understand what renovations will cost.

Planning

As with any residential building works, the renovation you may be planning for an empty dwelling might require the separate consents of planning permission and compliance with building regulations. Check if the property qualifies for permitted development (certain renovations you can do without planning permission, like some extensions).

If any such applications are necessary, it clearly makes sense to enter into early discussion with the local authority’s planning department to ensure the acceptance of your plans.

You may typically also need renovations insurance, too. (Read our Guide to renovating here).

Incentives

A further financial incentive for anyone planning to return an empty property into residential use is the discounted rate of VAT that your builder and other tradesmen may charge.

At as January 2024, if the property has been emptying for at least two years prior to your beginning the renovations, HM Revenue and Customs (HMRC) allows contractors to charge you VAT at the discounted rate of 5% (instead of the standard 20% on building works). If the property has been empty for the previous 10 years, different rules may apply.

6. Location and resale value

• Neighbourhood: Research the location thoroughly, considering local amenities, transport links, schools, and crime rates. An area undergoing regeneration could boost the property’s future value.
• Future value: Consider the potential resale value after renovations. Speak to local estate agents to understand how the property’s value could increase once improved.

7. Council Tax and Rates

• Council Tax exemptions/discounts: You may qualify for a council tax exemption or discount for unoccupied properties. Check with the local authority if the property has been vacant long-term, as some councils offer discounts for renovation periods.
• Empty Homes premium: Some councils impose a higher council tax rate for properties left empty for at least a year.

8. Grants and Incentives

Renovation grants: It is widely recognised that the long-term vacancy of housing is a waste of a valuable resource. Many dwellings remain empty because their owners lack the funds needed to make them habitable once again.

Government funding is available in some areas, therefore, to stimulate such housing being brought back into use and resources are allocated to local authorities for application in ways in which they see fit.

Each local authority has its own scheme for the use of such funding and the policies designed to stimulate the return of empty property to the housing stock. Many offer a range of services and advice relating to funding that may be available for renovating empty properties, advice on ways in which such renovations may be carried out, opportunities for letting the renovated property, or for its sale.

You can read more about Government empty house grants in our blog here.

Energy Efficiency grants: You might also qualify for grants related to improving the energy efficiency of the property, such as insulation or solar panels. Speak to your local council for more information.

9. Utilities and Energy Efficiency

• Utility connection: Ensure that all essential services (electricity, gas, water, sewage) are connected and in good working order. If disconnected, there may be reconnection fees.
• Energy Performance Certificate (EPC): When purchasing, ensure the property has a valid EPC, as this is a legal requirement. If the property is below Band E, you’ll need to make improvements before it can be rented out.

10. Time frame and planning

• Timescale: Be realistic about how long it will take to complete the purchase, especially if the property is in disrepair. Renovation projects can often take longer than anticipated.
• Project management: If planning a major renovation, consider whether you’ll manage the project yourself or hire a professional project manager to oversee the work.

By considering these factors, you can better navigate the challenges of buying or renovating an empty property and make informed decisions throughout the process.

Disclaimer: The information provided in this blog is correct at the time of writing (September 2024) and is based on our current understanding of the law. Please always seek professional help and advice.

If you own a property that you know will stand vacant and empty for longer than a month or two you might already have heard about the need for unoccupied property insurance.

As we’ve explained in our comprehensive guide to unoccupied property insurance, this additional standalone cover may be essential because your regular insurance becomes severely restricted – or might even be regarded as lapsed entirely – once the property has been unoccupied for longer than a month or so (different insurers specify slightly different limits).

 If yours is commercial property, you might want to review our Unoccupied Commercial Insurance FAQs.

Whether it is your vacant home or business premises you own, it is important to note that unoccupied property insurance providers will invariably require regular, properly logged, visits and inspections of the premises. That monitoring is part and parcel of the cover you buy

Nevertheless, monitoring unoccupied property – whether residential or commercial – also has the benefit of a wide range of technological solutions. Let’s take a closer look at some of those technological advances.

Smart home and commercial monitoring technology

Smart security systems connect to the internet via WiFi. That lets you monitor exactly what is going on in your home or commercial premises from practically any other location. It monitors security in real-time – without any real lag between events and your ability to review recordings:

Your home

• smart home monitoring will alert you to suspicious activity in or around your home and also give advance warning of maintenance issues or accidents – these might include fire and carbon monoxide detectors, along with burglar alarms;

• probably the most popular smart home monitoring systems rely on affordable yet effective doorbell cameras – which are easily installed and can be wireless or wired;

• the invention and development of smart wireless doorbell cameras means that they can be installed literally anywhere that is within range of your home’s WiFi range;

• a wireless system is easy to install – without the need to find the best routes for wires and cables;

• modern doorbell cameras typically offer a range of functions to enhance their operability – features such as multiple music playlists, variable volume, or flashing light alarms;

• just as they are easy to install, so they are easy to take down if, for example, you are moving house and want to take your smart doorbell camera system with you;

• you can also get small, wireless cameras that you can install (wirelessly) indoors and out. These can alert you, and often record, any intruders;

Commercial premises

• the monitoring of unoccupied commercial premises might require even more stringent monitoring to provide constant 24-hour a day fire and smoke detection, the monitoring of any installed fire suppression equipment, and the alarm systems of the premises;

• many commercial premises have smart security systems that monitor access by individuals – often through the incorporation of identity readers;

• commercial premises may also be fitted with closed-circuit TV monitoring of reception areas, corridors, and parking bays – smartly connected to remote screens for readers.

Looking to the future

Integrating smart home technology with unoccupied property insurance is a smart move for homeowners. It will protect the security of your home while you are away. Similarly, smart monitoring systems are invaluable for providing enhanced security for temporarily vacant and unused commercial premises.

As these technologies evolve, their role in safeguarding unoccupied properties will become ever more important, offering enhanced security, convenience, and peace of mind.

Whatever technological support you have employed in the smart monitoring of your home or commercial premises, however, remember that some unoccupied property insurance policies may typically still require regular, faithfully logged, physical visits – arranged informally for your home or through professional security services for your commercial premises.