At the heart of any successful home renovation project is the renovation insurance that safeguards the existing structure and fabric of the building from loss or damage.

It is important not to lose sight of this critical safety net at a time when many people who are emerging from the restrictions and privations of lockdown look to extend their home to create more space, make better use of its internal layout, or create a home office.

While planning consent, architectural and engineering input, and your budget are all going to be important factors in any renovation project, underpinning them all and lending the whole undertaking the security you need is renovation insurance.

Insurance to the fore

With the importance of insurance to the fore, when you are planning any renovation project, therefore, consider the status of your home insurance cover – essentially, does it provide the cover you continue to need?

Unless your idea of renovation amounts to little more than a quick lick of paint, probably the best way of establishing what cover you do or do not have is to ask your current home insurance provider.

In some cases, your existing cover will be unaffected by your plans to refurbish or even remodel your home.

The big exception, though, comes when you are planning anything that changes – or threatens to impact on – the physical integrity and structure of your home. When knocking down walls, building an extension, or doing anything that affects the structure of the building, you are almost certain to find that your home insurance incorporates important exclusions.

This means that if those works are excluded, your home insurance policy will typically become invalid.

What is renovation insurance?

At its simplest, renovation insurance is specialist cover designed to restore the safeguards temporarily excluded from your regular home insurance while building works are in progress.

Renovation insurance provides standalone cover that replaces your regular home insurance for the duration – so that the existing structure and fabric of your home and, if required, its contents continue to be protected while renovation works are in progress.

Why do you need renovation insurance?

Specialist renovation insurance is necessary, therefore, to plug any gaps in your existing home insurance while the works are in progress.

Unlike most other types of general insurance, renovation insurance is extremely flexible, and you may buy the cover only for the period during which you expect work to be taking place, rather than the full 12 months. If the project is scheduled to take just six months, for example, your renovation insurance may also last only that long – but may then be extended if the schedule of works overruns.

What does renovation insurance cover?

As explained, the primary purpose of renovation insurance is to replace any areas excluded from your existing home insurance cover because of the building works you have planned.

For a full and considered explanation of the function of renovation insurance, you might want to consult our Guide to Renovating.

What if your property stands unoccupied while it is being renovated?

One of the contentious issues sometimes associated with insurance cover when you are renovating your home concerns the period when the property is considered unoccupied for insurance purposes.

As a posting by the Financial Ombudsman Service on the 26^th of January 2021, suggests, you may be less than of the definition of an unoccupied property. Even though you have builders visiting the site every day, for example, most insurers will consider your home unoccupied if you have moved out for a period longer than 30 to 45 consecutive days while building works are in progress. Once it is considered unoccupied, the extent of cover may become severely restricted or even lapse altogether.

Specialist empty property renovation cover is then likely to be required to restore the safeguards your home continues to need.

Summary

It might seem that there are a thousand and one things to organise if you are planning to renovate or extend your home.

Planning consent, architecture and engineering drawings, and budgets aside, renovation insurance needs to sit squarely at the heart of your renovation planning to ensure the continued safety and security of your home. Please contact us to on 01702 606 301 if you are planning on renovating your property.

Buy to let properties are obviously no safer from then risk of flooding than any other.

While you might take a modicum of consolation from the fact that you are not actually living there, if you are the landlord of buy to let property that is flooded, you still have to deal with the colossal mess and consequences – the time-consuming hassle and energy of trying to sort things out.

On the strength of that old maxim that being forewarned is to be forearmed, here are some suggestions for preparing for the possibility of flood damage to buy to let property if you are a landlord:

Be prepared

• given the unpredictability of the British weather, flooding can occur at practically any time of the year and in almost any part of the country;
• even so, you can prepare for that possibility by assessing the current status of any risk to your property by consulting the government’s official Flood Warning Information Service – just key in the postcode of the property and you can view any long-term flood risks or current flood warnings;

Be insured

• in the light of any potential threat to loss or damage of your property, of course, your mind turns first to insurance;
• safeguarding against the risk of loss or damage to your buy to let property calls for exactly the same precaution – make sure you have adequate flood insurance;
• unfortunately, the Flood Re scheme which helps insurers keep flood insurance premiums lower does not apply to buy to let property – but that makes it all the more reason why you need to check that your let property is adequately covered against the risk of flooding;

Understand your insurance

• reread your buildings cover policy so that you are clear in your own mind about what is and is not covered and whether your policy provides new for old replacement for your belongings;
• some policies may also provide financial assistance towards the costs of cleaning and safety inspections for gas and electrical appliances – here at Cover4LetProperty, we can help advise you in this respect;

In the event of flood damage – make your claim

• your landlord’s insurance provider will require details when you lodge your claim – so, make a list of the damage to the property and those contents that belong to you (your tenants will obviously have to claim on their own contents cover for their belongings);
• take photos of any damage and leave any other evidence, such as a mark on the walls showing the level to which flood waters rose – so that you have a comprehensive record;
• if you have photos of your property prior to the flood then that may also help with your claim;

Record the progress of your claim

• keep a record of all conversations and contact with your insurance providers, particularly relating to any emergency work that needs to be carried out in advance of your formal claim;
• be sure to keep all related receipts and work quotes so that you can claim for the reimbursement of these expenses;
• don’t just throw damaged items away – your insurance provider or loss assessor may need to see these as part of their investigations, although spoiled food may be an obvious exception;
• you might also want to check your policy to see if it provides you with protection for loss of rental income if your tenants have to vacate your property while repairs are carried out – naturally, that could make a significant difference to your finances.

Remember too that there may be a few things that you can do to perhaps minimise the effects of such a flood should it happen again. Some of these may be fairly simple like using ceramic tiles and rugs on ground floors rather than fitted carpets.

Historic England – who know a thing or two about flood prevention down through the ages – have published a guide on making a home flood resistant and resilient. You might want to take a look at it.

A mixture of good news and missed opportunities inspired this past week’s headlines about the property market.

From first-time buyers making hay while the sun shines to a spotlight on some of the busiest markets. From developments in the relationship between landlords, their agents, and tenants to a failed scheme to make our homes greener … here is a brief round-up of the latest property news.

Over a third of FTBs have taken advantage of stamp duty holiday

The Chancellor’s introduction last July of a stamp duty holiday on the purchase of homes costing up to £500,000 was welcomed by all homebuyers, of course, but none more so, it seems, than first-time buyers.

According to a report in Property Wire earlier this week, 39% of all first-time buyers in the UK have already taken advantage of the tax-break to buy their home. And, a further 8% are renewing their plans to do so following the decision to extend the stamp duty holiday until the end of June – and continue the incentive until the end of September, but only on homes costing up to £250,000 via a tapered scheme.

The busiest property markets of 2020 revealed

Small towns, in parts of England and Wales previously shunned by many buyers, became the hottest residential property spots during 2020, according to the Daily Mail on the 26^th of March.

Buyers have avoided the larger towns and cities, preferring to escape to quieter, more remote locations such as Huntingdon in Cambridgeshire, Pontefract in West Yorkshire, and Great Yarmouth in Norfolk.

Smaller towns are in demand – other than Doncaster, each of the locations in the top ten has less than 100,000 inhabitants.

While turning away from the bustling pace of life in cities and the larger provincial towns, buyers have nevertheless sought out areas in which value for money could be found in affordably priced homes, revealed the survey.

Portsmouth, the Wirral and Luton all had the lowest property purchase rate in 2020.

PRS survey looks at landlord, agent, and tenant relationships

Earlier last month, Landlord News published the results of a survey investigating the nature of the relationship between landlords, their agents, and tenants:

• probably against the expectations of many, a full 95% of tenants said they had not fallen into rent arrears because of Covid;

• among those who have struggled, 58% praised the understanding of their landlord, with 31% of them offering temporarily to reduce the rent or grant a rent holiday;

• when asked to rate their landlord on a scale of 1 to 10, tenants gave them an average 7.4;

• landlord and letting agents, on the other hand, rated their tenants either 9/10 (30% of landlords) or 10/10 (29%);

• tenants were evenly split on the economics of renting – half of those surveyed said it offered value for money while the other half considered rent to be overpriced and more expensive than a mortgage;

• for 67% of tenants, homeownership is their long-term goal, while renting is the most affordable option for 51%;

• the majority of landlords surveyed (80%) have run their buy to let business for more than five years. Though two-thirds of them (65%) felt that the industry has grown steadily worse as a result of creeping legislation, regulation, and taxation.

Although 90% of landlords and their agents, therefore, feel unsupported by government, 79% are committed to their role as a landlord for at least the next five years. 

Green plan to upgrade homes was ‘botched’, say MPs

Parliament’s environmental audit select committee has issued a damning indictment of the government’s Green Homes Grants scheme, according to a report by the BBC last week.

Under the scheme, homeowners stood to gain grants of up to £10,000 in energy efficient insulation measures for their homes.

Only 10% success has been achieved in realising an initial target to insulate at least 600,000 in the first six months of the scheme – leading to rumours that the Treasury was arguing for the termination of the scheme. Rather than termination, the select committee has called for reform of the scheme and has branded its current performance as “inept” – to the point of damaging the housebuilding sector.

Should you manage a let property yourself or hand that particular job over to a letting agent? That’s a classic and much-debated question that has probably been around as landlords themselves – and there’s still no definitive answer.

Here are some of the typical pros and cons in the argument to help you form some views – if you don’t already have firm views, of course:

The potential upsides to using a managing agent

• taking on the role of a landlord can be a daunting prospect – and one that is bound to absorb much of your time if you intend to go it alone;
• especially if you are a new landlord, the daunting list of responsibilities might be downright frightening. A managing agent typically may be able to ensure you and your property is compliant;
• leading on from the point above, if you do not have a sound grasp about the increasing volume of legislation and regulation relevant to your role as a landlord a letting or managing agent might be indispensable in keeping you and your buy to let business the right side of the law, suggested a guide published by the Consumers’ Association’s Which? magazine;
• an agent may be able to market your property more effectively than you can yourself – especially if you are new to the ways of the buy to let landlord;
• they may also be able to help you with cost-effective second-level services such as cleaning, garden maintenance, and the like;
• if you are a more seasoned landlord, you might simply want to escape the time-consuming business of finding, vetting, and managing tenants;
• a managing or letting agent may free up a lot of your time since they will typically take on board a significant volume of the administrative tasks involved in managing let properties (advertising for and finding tenants, showing them around, taking inventories, and so on);
• your letting agent maintains a buffer between you and your tenants, so avoiding your need to get personally involved in resolving every single issue that arises during the course of any tenancy. Your agent should field all initial tenant calls, so you may find that you do not need to maintain a permanent telephone presence yourself;
• they may also be able to shield you from minor disputes that might arise with tenants from time to time.

The potential downsides to using a managing agent

• on the downside, a managing or letting agent will, of course, take a percentage of your rental income – and for some landlords that might seem a disproportionate or unreasonable amount;
• some agents may be tardy in escalating issues or even raising them with you at all in line with your own judgement – you will then need to instruct them more closely and hold them fully to account;
• their presence on and around your property may complicate your legal liabilities and your requirements for let property insurance – for example, in certain situations, the law may interpret managing agents on your property to be acting as your employees and that may introduce issues relating to your need for employers’ liability cover;
• relationships with tenants may sometimes be confused by having a third party involved and misunderstandings might arise a little more easily than would be the case if you always had direct personal contact; and
• strict legal liabilities may also become blurred in some situations – if you appoint agents and they make statements or issue undertakings on your behalf to tenants or other third parties, then you may be bound by them even if you subsequently find that you are not in agreement.

Each individual landlord may have his or her own views about managing agents. It’s a big subject and one worth thinking about carefully.

As the country and the property market begin to emerge from the relative inactivity of the previous lockdowns, a recuperation programme is beginning to take shape.

This involves a raft of inevitable tax changes and refinements as the government scours the coffers for the necessary funds to get the economy and the property market back on to their feet.

That picture is painted by some of the following property news headlines.

Budget changes and landlords

For landlords, some of the most significant – and potentially painful – changes on the horizon may be scheduled amendments to the tax regime. The chief features of the Chancellor’s latest budget were described in a piece by Which? magazine on the 3^rd of March:

Income tax

• the income tax personal allowance goes up from £12,500 to £12,750 and the threshold for moving up from the basic rate of income tax to the higher rate increases from £50,000 to £50,270;

Corporation tax

• the news is rather less promising for landlords who have formed a limited liability company and who, therefore, pay Corporation Tax;

• first, there was probably a sigh of relief that there is to be no immediate increase – as was feared – in the current 19% rate of Corporation Tax;

• less welcome, though, is the news that, with effect from 2023, it will go up from19% to 23%;

• the Treasury defends the position by pointing out that even the higher rate of Corporation Tax is still the lowest of all the G7 countries and smaller businesses earning less than £50,000 a year will continue to pay at the lower rate of 19%;

Stamp Duty

• landlords hoping to invest in new property will have welcomed the Chancellor’s extension of the Stamp Duty holiday for a further three months until the end of June. From then until the end of September, Stamp Duty will continue to be zero-rated for property valued at up to £250,000 (instead of the current) £500,000, but from 1^st of October 2021 will revert to its normal rate (paid on property valued at more than £125,000);

• the 3% Stamp Duty surcharge on the purchase of second homes – including buy to let property – remains in place throughout;  

Capital Gains Tax (CGT)

• another area in which some property owners had feared an early increase was CGT;

• in the event, this has been held steady – again, against expectations – but remains scheduled for a thorough overhaul in 2026, according to an article in the FT Adviser on the 3^rd of March.

Renting in the Capital is more affordable

The supply of private rented accommodation in London is bucking the national trend, reported Estate Agent Today recently.

Outside the capital, demand very markedly outstrips supply. But within London there has been a 30% increase in supply of rental property in January alone.

Although the market across the capital continues to be highly localised, the trends confirm a broad measure by which renting in the capital is becoming more affordable.

The new generation and what they do different when buying property

The pattern of homeownership – and the steps for getting on the housing ladder  – are qualitatively different for the current generation, argued Wales247 on the 4^th of March:

• renting presents more options for the kind of lifestyle they choose;

• longer-term mortgages are favoured;

• rooms may be sublet, or a home owned might be let to tenants;

• roommates are welcomed;

• homeownership comes later in life;

• smaller homes are favoured; and

• less expensive parts of the city are good for younger homebuilders.

Demand for rental properties beyond city centres rises

The demand for homes outside the major cities is some 21% higher than this time last year and those rental homes that are available are being let 30% more quickly than they were a year ago, said Property Reporter earlier this month.

The surge in demand for suburban and rural properties is fuelled by a post-lockdown demand for bigger homes that allow for more comfortable home working, access to a garden or other open space, and a lifestyle somewhat quieter than inner-city living.

Slowly but surely the energy efficiency ratings for any let property have grown steadily more exacting.

Energy Performance Certificates (EPCs) were introduced in the UK in October 2008 and every let property had to have one – rating the property from A (the most energy-efficient) to G (the most energy-inefficient).

With effect from the 1^st of April 2018 in England and Wales, a landlord wanting to issue a new lease or tenancy agreement to incoming tenants had to make sure that their property achieved a minimum energy efficiency rating of E, explains Propertymark. In Scotland, there is also a minimum energy efficiency rating of E.

These Minimum Energy Efficiency Standards (MEES) were extended to existing let properties and any renewed or continued tenancy agreement with effect from the 1^st of April 2020.

Landlord Today warned that the standards are unlikely to rest there are that the limit will probably be raised further – to a minimum D rating – before very long.

Against that background, how can you improve the energy rating of your property to meet ever-increasing standards?

The principles

Energy suppliers Ovo Energy state the fundamental principle of energy efficiency as simply as possible – it is all a question of doing more with less. That means getting the same or even more by using less energy.

It gives the example of the energy-efficient light bulb which gives out the same amount of light but consumes less electricity and has much lower wasteful heat-loss than its old-style predecessor.

When it comes to changing light bulbs, therefore, make sure you use only the LED low energy lights variety – and, if your tenants are expected to change them, encourage them to do the same.

By a similar type of logic, you can explain to your tenants that they are wasting energy if they leave heating turned up in rooms they are not using. You can play your part as a responsible landlord, of course, by ensuring that the property is sufficiently well insulated – yet still adequately ventilated – that heat generated within the property stays within the property.

Heating the home

According to estimates prepared by the Energy Saving Trust, half the amount of money spent by the average household on their fuel bill goes towards paying for heating and hot water.

You might start your energy efficiency improvements, therefore, by improving the efficiency of the installed heating system:

• not all central heating boilers are equal – consider replacing your existing one with a newer and more efficient boiler;
• heating controls have become ever-more sophisticated and can ensure that you get the heat where you want it when you want it – so fit thermostat controls on all radiators, which tenants can turn off in rooms they are not using;
• while you’re giving thought to those big-item, high-investment items, continue to tackle the smaller jobs – like lagging the hot water pipes, insulating the water tank and loft space, and generally installing whatever draught-proofing measures you can find and afford; and
• to keep your central heating system and the associated pipes and radiators running smoothly and debris-free, use chemical inhibitors to keep the system clean.

Retaining the heat

Having improved the efficiency with which you’ve heated your home, the next concern is about retaining as much of that heat as possible:

• cavity-wall or solid-wall insulation, for instance, is likely to save up to a third of all the heat that is lost in an uninsulated home, says the Energy Saving Trust;
• insulating the ground floor and those above cold outside spaces, such as your garage, will also help to retain the heat;
• insulate the hot water cylinder to reduce heat loss;
• draught-proof windows and doors; and
• loft and roof insulation can help cut the further 25% or so of heat-loss your home is likely to suffer.

More energy-efficient tips

NRLA (National Residential landlords Association) also suggests some simple tips too …

• bleed all radiators several times a year;
• replace older kitchen appliances for the most energy efficient type;
• fit sensor lights both externally and in communal areas so that no lights are left on unnecessarily.

By following just a few of these energy efficiency improvement measures, you could be well on your way to having a more energy-efficient and MEES-compliant home.

We are two months into the year, so what will the rest of 2021 bring for landlords? Here we look at some of the upcoming legislation changes. (Please note that this legislation is correct at the time of writing).

Evictions

One of the most significant legislative changes you might actually welcome. This is the return at the end of March to a more normal and familiar regime for evictions in England and Wales.

You will know that government pledged to help tenants during the successive rounds of lockdown by first of all putting eviction proceedings on hold and then requiring landlords to give at least six months’ notice of any intention to evict. As Which? magazine explained on the 4^th of January, the only exceptions to this rule are if the tenant is more than six months in arrears with the rent, obtained the tenancy under false pretences, or has been convicted of anti-social behaviour.

In England and Wales, those rules end on the 31^st of March and the situation reverts to the situation pre-pandemic.

The rules have been slightly different in Scotland and Northern Ireland, where a return to the pre-lockdown regime is also expected.

Electrical Safety Standards

The 1^st of April is the last date on which you need to have completed the now obligatory electrical safety checks – and have a satisfactory Electrical Installation Condition Report (EICR) – in any let property you own as a landlord.

Despite an attempt by the Association of Residential Letting Agents (ARLA) to get the government to delay this deadline – because of the large number of its members that own more than 60 properties that would have to be checked – the effective date remains.

By the 1^st of April, therefore, the law says that you must be in possession of an electrical safety certificate for any let property – and must have the electrical installation checked again at least once every five years.

Client Money Protection

The 1^st of April is also the final date for complying with the legislation that requires all letting agents to arrange membership of a client money protection scheme – which is, essentially, a way to ensure that letting agents have insurance to protect any tenants’ or landlords’ funds they hold.

Enforcement of the effective date has been delayed twice already – because of the coronavirus pandemic – explains Client Money Protect – but this 1^st of April is certain to be the final deadline.

Stamp Duty for foreign buyers

With effect from the 1^st of April, all non-UK buyers of residential property in England and Northern Ireland – whether as an investment or to live in themselves – must pay an additional 2% Stamp Duty surcharge. The stamp duty surcharge of a further 3% is also payable if the property is a second home – wherever in the world your existing principal home may be.

Bankers JP Morgan have pointed out that partial relief of the 2% surcharge had existed for foreign buyers completing their purchase of property valued at less than £500,000 between the 8^th of July 2020 and the 31^st of March 2021. That partial relief expires at the end of March.

Partial relief on the tax payable reflected the Stamp Duty holiday available to UK nationals – who also had to pay the 3% surcharge on the purchase of second homes and buy to let properties.

It remains to be seen whether the new 2% surcharge – in addition to the existing 3% surcharge on second homes – will further discourage foreign investors from purchasing buy to let property in the UK.

Some good news for tenants and their pets, a certain must-have for any student tenants, the state of the housing market, and how to improve your homebuying skills. These are just some of the recent headlines across the UK’s property news outlets.

So, let’s take a closer look.

Pets and lets

A press release from the National Residential Landlords’ Association (NRLA) recently described how the government has given a boost to tenants wanting to persuade their landlords to let them keep a pet or pets.

The news comes in the shape of freshly amended provisions in the model tenancy agreement which the government encourages landlords to use – but which is by no means obligatory. In its release of the new model agreement, the Ministry of Housing, Communities and Local Government explains that the revisions have been made with the express purpose of helping tenants with well-behaved pets.

If you choose to use the model agreement, you also agree to entertain requests in writing from your tenants to keep a pet. If you object to the request, you must (again in writing) give the tenant a good reason for that refusal – although you still have the right to refuse tenants with pets.

House price growth slows

When the restrictions of the pandemic’s first national lockdown were lifted the housing market and average house prices bounced back in a surge of released pent-up demand. The Chancellor’s decision to offer a Stamp Duty tax holiday added further stimulus to the tidal wave of activity.

A story in Property Wire on the 3^rd of February suggests that the resurgence is now waning as the 7.3% annual increase in average house prices which was achieved in December – marking a six-year high – has been knocked back to 6.4% in January.

Although the somewhat dampened enthusiasm on the part of buyers may be explained by the imminent removal (at the end of March) of Stamp Duty tax advantages, market analysts predict only a “softening” of prices and activity, rather than a major reversal.

58% of students will not rent a property with poor internet

If there’s one thing that any landlord always wants to know it’s what their tenants most want from a let property.

A recent survey lifted the lid on what most attracts student tenants. 58% of those interviewed said they wanted a good, reliable internet connection – saying they wouldn’t consider renting a place that did not have high-speed broadband.

Further survey questions reveal that, because of the Covid restrictions on face-to-face teaching, a third of students are spending an extra five hours a day studying online; 21% of them an extra four to five hours; and 24% an additional three to four hours.

Little wonder, then, that a full two-thirds of all students gave top priority to having good and reliable internet access at home.

How good manners could help homebuyers

“Manners maketh man” – and the successful homebuyer, according to a recent story.

The news story cited recent research suggesting that the first impressions created by well-mannered prospective buyers when viewing a home are likely to go down so well with the vendor that they could be more inclined to accept their offer.

A survey of sellers revealed that 72% of them were more likely to accept an offer if the prospective buyer came across as polite and well-mannered. The story went so far as to suggest that in more than a third of all sales (36%) buyers who created a good first impression stood to make savings on the price of the property.

Good manners may count for something if all things are equal. If the seller receives a better offer, however, manners might take second place.

In making the most of your let property, you are following the same principles as making the most of any business asset – on the one hand ensuring that the asset contributes its utmost to the profits of your enterprise and, on the other, safeguarding that asset against potential loss or damage.

Profitability is one dimension, therefore, and appropriate buy to let insurance is the other. So, let’s take a look at these twin dimensions.

Profitability

Maintaining the profitability of your buy to let business is not always easy. As a general rule, it involves a careful balancing act between the income you receive from rents and your expenditure on essential running costs, such as repairs and maintenance, letting agents’ and other professional fees, and insurance.

While rental income boosts your bottom line, expenses inevitably undermine it. The balance is delicate yet critical – in some of the following ways:

• nothing undermines your buy to let business more or undercuts your profitability than the expense of rental arrears – and any resulting eviction procedures. So, make sure from the outset that you take all necessary steps to try and identify potential problem tenants during the selection process, in advance, during your interviews and when taking up their references;
• consider using a property management agency. Although letting agency fees inevitably add to your operating costs, the appointment of agents might result in increased overall efficiency and help to achieve cost savings. Do your maths carefully though. You can read our Guide to choosing a letting agent for more information;
• if you are furnishing your let property, beware of fragile items or those that are known to deteriorate rapidly, if only through normal wear and tear. You can’t automatically blame your tenants for problems in this area and assume that they will pay up;
• make a point of regularly reviewing the costs of any utilities and services you are paying for – such as telecoms providers, internet service providers, electricity companies and so on;
• for regular repairs and maintenance, consider a service contract with a local builder. Of course, you may be able to do a lot yourself on a DIY basis but having an established relationship with a reliable builder might be a lot more cost-effective than ringing around trying to find one at random in an emergency;
• employ a good accountant. Your informal business status might lead you to believe that there is little work needing the formal input of an accountant. Nevertheless, a reliable, professionally-qualified accountant might be able to save you significant amounts of money on your taxes and other expenses each year;
• speak to your bank about setting up a business account exclusively for your buy to let business. Make sure you compare what they are offering you in terms of facilities and prices, against those of the competition;
• don’t ignore out of pocket or miscellaneous expenditure. Spending a few pounds here and there without taking the expenditure into account in overall business terms can be a serious mistake, as these seemingly small items can mount up to serious totals throughout the year as a whole.

One of the most critical items of recurring expenditure is the annual renewal of your landlord insurance policy. The business security given by adequate and appropriate landlord insurance cannot be overemphasised. You will not want to overlook it – and that is why we are devoting the whole of the following section to finding suitable insurance cover for your let property.

How to find suitable cover for your let property

At Cover4LetProperty, we’re committed to helping you find suitable cover for your property. Here are a few things we believe that you might wish to think about in advance of starting your search.

Who are you letting to today? Or who may you let to in future?

This is pertinent because some landlord insurance companies exclude cover for certain categories of tenant, such as students, the unemployed or welfare benefits claimants.

This may become less of a problem in future following a court ruling on the 1^st of July 2020. A decision in York County Court found that a landlord had discriminated against a prospective tenant – on the grounds of the tenant’s disability – and ruled that such discrimination is unlawful, explained the housing charity Shelter on the 14^th of July.

In the meantime, however, you may rest assured that none of the landlord insurance policies arranged here at Cover4LetProperty includes any such exclusions against any class of tenant.

Is your property a house or a flat in a multi-occupied building?

If your let property is a House in Multiple Occupation (HMO), remember that there are landlord insurance policies specifically designed for cover in such circumstances.

Are you letting furnished or unfurnished?

The answer to that question, of course, is likely to determine the importance you attach to the inclusion of contents insurance in your buy to let insurance policy and, if so, the total value of the contents insured – in addition to the total building sum insured.

Do you have burglar alarms and additional locks?

If you are able to increase the security precautions around your property, you may find that some policies will offer you discounts on your premium in recognition of the fact you are reducing the risks to the insurance provider.

Do you have high-value items for inclusion in your contents cover?

If you do have, some policies may not cover them at all. Examples of excluded items of high value might include jewellery, works of art, collectables, computers, hi-fi equipment, or antique furnishings.

Other policies may have strict maximum values for items covered and policies, in general, may have overall ceilings on the maximum settlement sums available.

It is important that the type and levels of cover selected are commensurate with the nature of your contents.

Are things such as subsidence cover important to you?

If you believe your property might be at risk of subsidence, this is likely to influence your search for landlord insurance because such cover is no longer automatically included, as standard, in all landlord insurance policies.

You may be reassured by the fact, therefore, that all the buy to let insurance policies arranged here at Cover4LetProperty include subsidence cover as standard for all properties built after 1849 (up to set limits – which are detailed in your policy documents).

Summary

We hope this brief article has given you some ideas on how to make the most of your let property while ensuring it is properly protected. We have lots of useful guides and information on our website for landlords – and not just about insurance – so why not have a coffee and browse our website for more information and advice?

What a year 2020 was! Yet, the property market has not only survived but also continued to prosper.

As we saw things through to the end of the year, here are some of the news headlines that caught our attention.

Gas boilers could become an issue for landlords

Do you maintain a gas boiler in your let property? Gas-fired boilers for hot water or central heating are especially popular among landlords but have also become the focus of mounting concern, according to a story published by Landlord Today in December.

The article recounted advice given to government by the independent Committee on Climate Change which urged a ban on the sale of gas boilers after the year 2033 – in just 12 years’ time. Furthermore, said the Committee, the generation of all electricity needs to be carbon-zero by 2035 if the government is to achieve its target of net zero emissions by 2050.

Any ban on the sale of gas boilers, of course, would be part of the overall strategy of moving towards cleaner energy.

It is only 18 months ago that the government promised to make it illegal to install gas boilers in any newly-built home after 2025. This would be achieved by introducing a new “future homes standard” stipulating that all new residential buildings have to be heated through low-carbon devices – such as electric heat pumps.

What will happen in 2021 to house prices?

Anyone who can accurately predict future markets is likely to make themselves rich indeed. Our closest estimates are instead usually based on current trends and the forecasts of informed market analysts.

In its story on the 23^rd of December, the Express newspaper turned to just such trends in an attempt to forecast the movement of house prices in 2021.

The overall picture seems to be one of uncertainty. Currently, for example, the property market continues to ride the wave of the revival that followed the lifting of the first national lockdown. With the release of the previously pent-up demand, prices began to rise, and that buoyancy was further encouraged by the Chancellor’s introduction of a Stamp Duty holiday.

As the New Year wears on, however, the tax holiday will expire at the end of March, furlough schemes will come to their natural conclusion, and unemployment may begin to rise. These are all factors likely to herald a fall in house prices.

Building society, the Halifax, for instance, forecasts a fall of between 2% and 5% – with the extreme end of that scale seeing the average house price drop by some £12,660.

The CEO of a property group cited by the Express newspaper, nevertheless predicted that house prices would bounce back again towards the latter part of 2021.

Taking the year as a whole, therefore, the fortunes seem to be mixed – falling from a current high, dropping by anywhere between 2% and 5%, before picking up once again in the second half of the year.

Help demanded for landlords to meet energy targets

Although it broadly supports the government’s aims of improving the energy efficiency of the whole housing stock, the National Residential Landlords’ Association (NRLA) has called for publicly-funded support for landlords to help realise those aims.

In a press release on the 22^nd of December, the NRLA argued that landlords – especially those owning older properties in so-called post-industrial regions of the country – could face the biggest challenges and the heaviest financial burdens.

The government has already announced a target of increasing the minimum energy efficiency rating in let property to band C by the year 2025. Yet reducing carbon emissions and improving the energy efficiency of older property is invariably more expensive.

Although the government has mooted increasing the cap on the maximum expenditure covered by the Green Homes Grants scheme from the present £3,500 to £10,000. The NRLA has asked for an explanation about how the new figure was determined and for an indication of further financial support for landlords.