As the country faces the biggest lockdown it has ever experienced, the measures taken against the spread of the coronavirus affect everyone. That extends to the private rented sector, where landlords and tenants are in this together.

The shared interests of landlord and tenant are recognised in an article by the Residential Landlords’ Association (RLA) on the 24^th of March 2020. With an ever-present possibility of needing to self-isolate, tenants more than ever need the security of their rented accommodation. For landlords to continue to provide that security of tenure, they in turn need to rely on steady rental income – or suitable financial support.

Financial support for landlords and tenants

The RLA welcomes the steps taken by the government to encourage buy to let mortgage lenders to allow repayment holidays – of up to three months – when landlords experience financial difficulties because their tenants need to self-isolate or have lost their jobs.

In return, landlords should be reasonably expected to grant a rent holiday to any of their tenants who are in financial difficulties because of the coronavirus lockdown.

Tenants have also been granted concessions if a landlord wants to repossess their let property. The period of notice that the landlord must give of any such intention has been extended from two months to three months during the current emergency. The move has not gone down entirely well in all quarters. The Guardian newspaper on the 24^th of March, for instance, reported complaints that evictions had not been banned – and tenants have simply been given “longer to pack their bags”.

Tenants on Universal Credit

Tenants who fall sick, have to self-isolate, or lose their jobs will be faced with a raft of financial difficulties, including the payment of rent.

To help them through these difficult times, therefore, the RLA is also asking the government to consider temporarily shelving the current requirement for claimants to wait five weeks before the receipt of their benefits. The first payment should be made far sooner, says the RLA.

Income tax relief on mortgage interest repayments

Since April 2017, income tax relief on mortgage interest repayments has steadily been withdrawn from landlords. With each new tax year, the amount of relief that can be claimed has been lowered. The beginning of this year’s new tax period in April is scheduled to see the relief removed altogether. It will be substituted with a tax credit equivalent to 20% of mortgage interest repayments.

The new tax regime results in many landlords paying considerably more in income tax. Those on higher or additional rates of income tax, for instance, had effectively received 40% or 45% tax relief respectively.

So that at least some landlords continue to receive more of the income they generate from rents, therefore, the RLA has asked the government to temporarily suspend the final stage in the withdrawal of income tax relief on mortgage interest repayments.

Routine inspections of let property

To reduce the risk of spreading coronavirus infections, the RLA is also pressing for a suspension of routine management inspections of let property – including those needed for the licensing of new properties.

Not only should inspections be temporarily suspended, but so too should non-essential building works that are prompted by local authority enforcement action – for the health protection of tenants, landlords, and their contractors.

Your property may be unoccupied for periods of time. In terms of your insurance cover that might not be an issue – but it may become one.

It’s worth reading on to be sure you’re clear as to the difference. But first, why do properties become unoccupied and when are they classed as unoccupied?

Why properties become unoccupied

There could be any number of reasons why your home or a property you own or are responsible for becomes unoccupied:

• the death of a relative means you’ve inherited a property – whether it’s furnished or empty. You may also be legally responsible to protect the value of the property if you’re an executor of a will;
• your new tenants have notified you at the last moment that they won’t be moving in;
• you’re unable to let the property when planned due to over-running re-decoration or other works;
• your tenants have notified you of their intention to take an extended overseas trip for business or pleasure purposes;
• it’s proving difficult to find tenants – for whatever reason.

In cases such as these, after a set number of consecutive days, specialist unoccupied property insurance is typically required.

Why is this?

A typical landlord buildings and contents policy (and a standard home insurance policy too for that matter) will only maintain its full protection of your property for a specified maximum number of consecutive days without someone in residence. There may be some variation here from one policy to another but typically that period ranges from 30 days to 45 days or even 60 consecutive days.

In terms of insurance, your property may become formally unoccupied in the eyes of your insurer once it passes that specified number of days without tenants being in place or someone living there. Or if a policyholder dies, any existing home insurance could immediately have reduced protection.

What are the risks that an empty property may face?

Some of the problems most frequently encountered by owners of empty or unoccupied property – aside from storm, flood and fire etc. – may typically include:

• if it is normally let – whether for residential or commercial use – there is, of course, a loss of rental income; but
• significant threats also come from vandalism, squatters, arsonists, fly-tipping and graffiti;
• within the last decade, squatting has been made illegal, but this has done little to reduce the number of squatters, which is still an issue;
• in addition to wilful damage, empty properties are also vulnerable to the need for initially minor repairs and maintenance to develop into major incidents – and serious damage – if left unnoticed and unattended;
• in time, any one or all of these problems are compounded as concerns are shared by owners of nearby properties and the neighbourhood in general enters a downward spiral of decline.

When is a property classed as unoccupied?

As we touched on before, the cover which normally protects an owner-occupied residence, a buy to let residential or commercial premises typically lapses or is severely curtailed once the premises have been unoccupied for a given length of time.

In the case of owner-occupied residential property, for example, this interval may be as short as 30 consecutive days since no one has been living there. The precise interval may vary from one insurer to another, but any cover for any type of property is likely to lapse or become significantly restricted after a period of, say, 30 days to 60 consecutive days.

Once your property becomes defined as being formally unoccupied by your policy, elements of the cover provided might typically change or cease.

That could leave you exposed in terms of the totality of your financial protection.

It happens because insurers broadly regard an unoccupied dwelling as being at higher risk of certain types of peril than those that are occupied. For example, it’s generally recognised that unoccupied properties are far more attractive to criminals, such as burglars, than those with people in them.

As a result of these increased risks, your insurer will limit the period of time they’ll maintain full coverage on your house once it’s unoccupied. A standard policy’s cover will usually be sufficient to cope with a normal duration holiday and most tenant changeovers but it’s important to take steps to protect your interests if you look likely to exceed the specified number of days.

It’s worth noting that in some cases, such as if your property is undergoing extensive renovation and building work, it may be advisable to consider specialist renovation insurance. We’d be only too happy to advise you on that and would welcome your call or email contact for a further discussion.

What that means for you

Appropriate unoccupied house insurance is half of the story – the other half is down to you in helping to reduce the risks. As with any other form of general insurance, an insurer has the right to expect you to take all reasonable measure to help mitigate the risk of loss or damage.

In respect of an empty property, therefore, you may be expected to take some or all of the following precautions:

• fire is clearly one of the major hazards, so you need to make sure that obviously combustible materials are kept well clear of boilers and stoves;
• utilities – water, gas and electricity – may need to be turned off and, in the case of commercial property, securely locked into the off position to prevent them being turned on by accident or maliciously (excepting those utilities that are used for security purposes etc);
• fire and intruder alarms may be fitted to detect potential dangers and to sound the alert if there are intruders or services have been tampered with;
• regular inspections and visits to monitor the state of security and maintenance are important whether the property is your own home, holiday home, or let residential or commercial property;
• to strengthen your position with the insurers in the event of a claim, it may be mandatory to show a written record of the visits and inspections that have been made;
• having secured and locked your vacant property, it is important that reliable key holders are found to provide access in the event of an emergency – depending on the nature of the premises, you may also need to keep a clear, written record of those key holders;
• once again, depending on the nature of the building, you might want to consider who needs to know that it is going to lie empty – apart from your insurers, these might include the police, fire brigade and utility companies, who may need to be informed of contact details for your keyholders;
• an empty property still needs to be maintained and kept in a good state of repair – remembering that the risks may increase during the storms and freezing conditions of many winters.

Playing your own part and keeping your vacant property adequately protected by unoccupied home insurance may help to safeguard what is likely to have been a very significant investment in the purchase of the premises.

What to look for in your unoccupied property insurance

First and foremost, you need to satisfy yourself that the policy provides the cover you need. Fortunately, unoccupied property insurance is generally flexible enough to be tailored to suit your particular needs – from relatively basic to fully comprehensive cover.

You might also want to consider how long you are going to need this special form of protection to last. Once again, a benefit of unoccupied house insurance is its flexibility in the period of cover you may arrange. It may be short-term cover, for example, allowing you to buy insurance for 3 or 6 months, rather than the customary full 12 months.

You might want to make especially certain that your unoccupied property insurance also provides sufficient indemnity against property owner’s liability claims – which may arise if a member of the public is injured or has their own property damaged after coming into contact with your empty property. Indemnity of at least £2 million is typically provided. That action involves considering unoccupied property insurance.

We are experts in providing unoccupied property insurance and landlord insurance

Cover4LetProperty offers online insurance quotations and over the ‘phone for your unoccupied property insurance. we have a range of policies, meaning there is one to suit your budget and your cover requirements.

Please read our guide to unoccupied property here or view our short video entitled: Do I need a specialist unoccupied property insurance policy?

If you own or are responsible for insuring a commercial property, then, especially in the current circumstances, you must check that your property has the correct insurance.

With many businesses temporarily closing – leaving them unoccupied for a period of time – the protection offered by a commercial buildings insurance may become severely restricted. In some cases, it may lapse entirely.

This is because, when your property’s unoccupied, statistically it suffers a higher risk of damage from flood, leaks, arson, burglary, vandalism and perhaps squatting. And no one is there to notice if there is a small leak, for example, which, left unrepaired can cause extensive damage, or to act as a deterrent to burglars etc.

This higher risk typically won’t be covered by your commercial property insurance, so the first thing you need to do if your property will be unoccupied is to check what your current policy entails.

Check what your current insurance policy covers

Policy features, benefits, terms and conditions vary depending on your insurer and product type. Check the terms and conditions of your commercial property insurance carefully since many insurers restrict or remove cover altogether once the building has been unoccupied for a given period – a period which varies from one insurer to another, but typically is around 30 consecutive days.

Once you have reviewed the exact provisions of your existing commercial property insurance, you may need to consider unoccupied property insurance to restore the level of protection you require for the building, its contents and your liabilities as the property owner.

It is also important to note that if you have a mortgage on the commercial property, it may be a condition of your mortgage agreement that you have adequate, valid buildings insurance cover at all times. Failure to do could see you in breach of your mortgage contract, which can have serious consequences.

What should you do if your commercial property will be unoccupied?

Firstly, speak to us so we can arrange specialist commercial unoccupied property insurance.

Secondly, ensure you understand what all your obligations are under the terms of your unoccupied property to ensure full cover continues. Generally, you will be obliged to carry out certain activities during the period of unoccupancy. These may vary on a policy by policy basis, but in most cases,  you will need to:

• regularly check the building (usually once a week) and maintain a log of these visits;
• ensure that any utilities are turned off (except those needed to power security and fire alarms);
• keep the area and yards around the building free from waste and refuse;
• ensure the building is properly secured, with all alarms turned on and locking devices in place.

Further reading: Commercial property insurance.         

Do you have any questions?

Then please contact us – we’d be delighted to help.

It pays to stay abreast of the news if you are a landlord. You never quite know if or when something maybe afoot that is going to impinge on your buy to let business.

So, here are a few of the latest snippets to help keep you in the picture.

Landlords reminded about Making Tax Digital

Are you prepared for the possibility of having to file an income tax return every quarter, together with a final declaration of your earnings each year?

HM Revenue and Customs (HMRC) has issued a reminder that the requirements are on the cards sometime in the future, reported Accountancy Daily on the 11^th of February. If you want to prepare for the inevitable introduction of the new arrangements, you can sign up for the current trial – which has been running for two years now – if you own let property in the UK and your sole earnings are from that buy to let business.

The proposals are all part of the government’s Making Tax Digital (MTD) initiative which envisages landlords and others switching to digital record-keeping and the automatic, electronic completion of the necessary tax information. It means that you will not be making manual tax returns four times a year and the annual declaration – which replaces yearly self-assessments – will also be fed by the electronic data.

Landlords warned to be on the look-out for cannabis farms

A drug bust in an up-market six-bedroom house in North London has left the landlord with a huge bill for clearing up the mess and damage caused after the erstwhile tenants were arrested.

The website Junk Hunters described how the clean-up operation took four men 10 hours to complete as they carted away five skip-loads of rubbish – and that was before the landlord had even started on the extensive repairs required to the property.

Receiving regular payments of rent for the first six months of the tenancy, the landlord believed all was going well. The nightmare started when the Metropolitan Police telephoned to say that the cannabis farm in his let property had been raided and two men arrested.

The dire consequences for landlords who unwittingly let their properties to tenants who subsequently turn the property into an illegal cannabis farm are described in our Guide to landlords and cannabis farms, published last October.

Renewed interest in the residential property market

You have probably been waiting a long time to hear it, but there is finally some good news for landlords about rising confidence in the buy to let market, according to a report by Landlord Today on the 13^th of February.

Surveyed at the recent National Landlord Investment Show, some 60% of attendees said they were hoping to add to their portfolios of buy to let properties over the next 12 months. 71% of them said that their preference was for investment in residential property.

Despite a recent swing in favour of buy to let investment through specially created limited liability companies, some three-quarters of those questioned at the show, said they were individual, private individuals and currently owned no property through a company.

The principal reasons for investing in buy to let property were either to save for a pension (54% of respondents) or for financial assistance to their children in the future (27%).

UK homes losing too much heat

It’s cold outside – and according to an article in Property Wire on the 21^st of February, it could be almost as cold inside your home too.

Recent research has shown that the average home in the UK loses its heat much quicker than those in the rest of Europe. A home in the UK that has been heated to 20 degrees C loses an estimated 3 degrees over five hours, according to the study, while a European home heated to the same temperature loses only 1 degree over the same period.

Part of the explanation may lie in the age of the UK’s housing stock and the fact that only 2% of homes achieve the top energy rating. Improved insulation, through simple measures that can be made even in older houses, is the key to keeping the warmth where it belongs – inside your home.

Carbon monoxide (CO) is produced when carbon fuels, including coal, wood, gas and oil do not burn properly – typically because of a lack of air. CO is a highly toxic, odourless and colourless gas, so almost impossible to detect with your senses alone. That is why a professionally-made yet affordable carbon monoxide detector is essential.

Carbon monoxide detectors are essential because the gas is a potential killer. More than 50 people a year die from carbon monoxide poisoning, revealed the website Good to Know in a posting dated the 24^th of January 2020, and thousands more need hospital treatment because of its effects.

That is also why we have highlighted – in an earlier need to know posting – the importance for landlords to understand their obligations to install carbon monoxide detectors in their let property.

Symptoms of carbon monoxide poisoning

Not only is the gas itself invisible, colourless, tasteless, and odourless, the symptoms of carbon monoxide poisoning are anything but easy to diagnose. Many symptoms are similar to the ‘flu, other viral infections, food poisoning, tiredness or even a hangover, suggests advice from the Gas Safe Register.

The advice goes on to describe the main symptoms victims are likely to experience – symptoms which may be shared by other occupants of the home and which might appear to get better once you go outside:

• nausea;

• dizziness;

• breathlessness;

• headaches;

• collapse; and

• eventual loss of consciousness.

What to do

If you, your family members or tenants are suffering from any of these symptoms and carbon monoxide poisoning is suspected, the following course of action should be taken:

Get the affected person outside into the fresh air as quickly as possible;

• turn off any gas or oil-fired appliance immediately and open doors and windows to let air in;

• go to the accident and emergency wing of your nearest hospital – where you may be given a blood or breath test to check whether you have CO poisoning; and

• if you smell gas, telephone the gas emergency helpline on 0800 111 999.

Spotting carbon monoxide leaks

You are not able to smell it, taste it, or see it, but there are a few tell-tale signs that might indicate a CO leak:

• the pilot light on a gas- or oil-fired boiler often goes out – or burns with a weak yellow flame rather than a bright blue one;

• there is a build-up of dark soot around the appliance or boiler; or

• there is an unusual amount of condensation on the windows of the room in which the appliance is installed.

Once again, if you suspect a CO leak or if anyone appears to have been affected by it, take immediate action.

As we move further into a new year, you’ll want to keep abreast of the news about buying to let. Here are a few of our latest snippets to help ensure you stay well informed and fully up to date.

Mandatory electrical safety regulations to be introduced in England

New legislation is making its way through parliament that requires private sector landlords to carry out electrical safety checks on let property, reported the Sun newspaper last month.

With effect from the 1^st of July 2020, an electrical safety certificate must be obtained before any new tenants move in and the requirement will be extended to all existing tenancies on the 1^st of July next year.

After the first such inspection by a qualified electrician, further checks must be made at least every five years.

The new legislation gives greater, specific force to general regulations which are already in place that impose a requirement on landlords to ensure that electrical equipment is safely installed and maintained in any let property.

Lets and pets

The government is amending its model tenancy agreement in a bid to persuade more landlords to welcome tenants with pets, revealed a story in Landlord Today recently.

Although some 40% of all UK households own a pet, only an estimated 7% of private sector landlords currently allow them. Designed to make renting easier for those many households who want to keep a pet, the government statement puts the emphasis on animals that are well-behaved and do not cause damage to a landlord’s property.

At least one sector of the private rental market appears to have taken heed of the government’s encouragement for landlords to accept pet-owning tenants, revealed Property Investor Today on the 10^th of January.

The story describes how many Build to Rent developments – which includes some 150,000 homes – not only allow pets but also provide onsite managers and amenity spaces for gyms and roof terraces.

BBC probe into quick home sales

On the 27^th of January, Estate Agent Today lifted the lid on the possible scam being run by so-called “quick sale” firms – which may be losing homeowners thousands of pounds when they sell their property.

Trading Standards officers are currently investigating a number of firms that promise to sell your home as quickly as within seven to 14 days – but at the cost of reducing the sale price by tens of thousands of pounds, sometimes without the vendor’s knowledge or authorisation.

Lawyers warn that actions such as this may amount to a breach of the law on Consumer Protection from Unfair Trading 2008 – which may be attract the penalty of up to two years in prison or an unlimited fine.

37% of UK property investors are planning on selling this year

More than a third of buy to let landlords are planning to sell one or more properties in their portfolios this year, revealed Luxurious Magazine on the 22^nd of January.

Giving their reasons for withdrawing from this investment market, 72% of respondents cited their belief that regulation of the private rented sector and an unfair tax regime tied the hands of landlords. 61% of those surveyed gave this as their reason for selling up.

69% also complained that the costs of running any buy to let operation had also increased significantly in recent years. A further 53% complained that they would not have invested in buy to let property at all if they had been aware how the private rented sector was to become so tightly regulated.

If you are a property owner or buy to let landlord, one of the important questions is likely to be what the recent general election means for you and your investment.

Certainty and stability …

Probably the best news about the election result – and such a large majority for the new government – is the economic stability it is likely to bring. The commitment is to “getting Brexit done”, there is a deal on the table, and that element of certainty is already lending a boost to the markets.

As far as property prices are concerned, that means some release for the pent-up demand that characterised the housing market while the future of Brexit looked in doubt. Certainty stimulates movement because property owners prefer to be doing something rather than staying put, asserted a story – citing accountants Price Waterhouse Coopers (pwc) – in the Telegraph newspaper on the 13^th of December.

… but there are other factors at play

Although markets may be breathing a sigh of relief about the passing shadow of Brexit, that is by no means the only factor affecting property prices.

The property market is fundamentally determined by affordability – what buyers can actually afford to pay. In the recent climate in which house prices have been rising faster than incomes, there are naturally fewer buyers capable of paying those prices.

Furthermore, (as at the time of writing) the imposition of a surcharge on the Stamp Duty Land Tax means that you must pay 3% above the standard rate if you are buying a second home or, more critically for landlords, a buy to let property. In its manifesto, it was also proposed that an additional 3% surcharge would be placed on residential properties bought by both individuals and corporations based overseas.

In recent years, the Bank of England has also looked to cool what it considered to be an overheated buy to let market. It has done so by imposing much tougher affordability rules on mortgages for buy to let property – so dampening the ability of potential landlords to invest.

What it means specifically for landlords

Although landlords might look forward to a revitalised housing market as an impetus for investment – especially since demand continues to outstrip supply – planned legislation will go ahead.

For example, plans for the abolition of Section 21 “no-fault” evictions are still proposed. This forces landlords to rely on the often more long-winded – and expensive – Section 8 eviction and the need to prove a tenant has breached the terms of their tenancy.

And, with effect from the 1^st of April 2020, any landlord must also ensure that the energy efficiency rating of any let property must achieve category E or above. It will become illegal to let properties achieving ratings of F or G.

2020 also marks the completion of a revised tax regime which completely removes any tax relief for landlords on the mortgage interest they pay, as a story in the financial pages of the Daily Mail reminded readers on the 13^th of December 2019.

This month, we round up some of the latest recent news and views relating to property. So, whether you are a landlord or an owner-occupier, read on.

Property hotspots for buy to let investors in 2020

If you are investing in buy to let property, you want to know where in the country you are likely to make the biggest returns.

An article in Landlord Today offers a few suggestions.

The latest research shows that Oxford and Manchester are practically neck and neck – with the former slightly edging it in a survey of 25 cities.

In Oxford, some 28% of residents occupy the private rented sector, which has some of the most rental properties available. There are few vacancies across the rental market here, where the average rate is around £596 a month for a single room.

Although property prices in Oxford have risen by an average of 4.8% a year during the past ten years, the highest yields on rental investment are obtained over the longer rather than shorter-term.

Second and third places in these rankings are occupied by Manchester and Edinburgh, with London quite closely on their heels.

Rogue landlord fined

A district judge in the West Midlands perhaps had the approaching Christmas in mind when he described the Dickensian character Scrooge as a philanthropist compared to the rogue landlord who appeared before him in court.

The 55 year-old landlord from Birmingham was fined a total of £20,000, according to a report in LocalGov on the 11^th of December.

The offences related to his failure to obtain a licence for the House in Multiple (HMO) he let, plus a string of health and safety infractions that breached HMO Management Regulations. The latter included the absence of smoke detectors, a lack of effective fire doors, blocked fire escapes, burnt electrical fittings, and a failure to obtain the necessary gas and electrical safety certificates.

Looking to improve your property?

On the 11^th of December, What Mortgage published a brief list of dos and don’ts for homeowners and landlords looking to renovate their property:

• check whether you need planning permission and, if so, apply for it in good time;

• get written quotes from more than one builder and interview each of them to choose the most reliable;

• if you are the leaseholder of the property, remember that you may need the permission of the freeholder;

• keep your neighbours full informed of your plans and intentions;

• when engaging professionals, do so before rather than after any problems have arisen; and

• make sure to arrange renovation insurance and to review the property’s level of insurance cover once the works are complete.

For more details, you might also want to review our Guide to Renovating.

North Lincolnshire the best place to raise children

For young families, North Lincoln seems to have it all, according to a story published by Property Wire last month.

86% of the local authority schools in the area were highly rated in Ofsted inspections, yet there were still plenty of vacancies for new entrants in the past year – one in seven, or 14%, of places remained unfilled.

North Lincoln is also an affordable place to live, with the average price of a home at £149,000 – which represents just 17% of the area’s average salary of £25,000 a year.

With the 12^th of December now firmly in politicians’ minds you might expect the whole of the country to be caught up in general election fever.

In these strangest of times, however, that doesn’t appear to be the case. Life – and other news in all its various forms – continues as normal.

If you are a homeowner or landlord, of course, that means any news on the property front. So, to help you keep up to date, here are a few of the latest snippets.

What do homebuyers search for online?

With the many resources available these days, it’s little wonder that many prospective property buyers search the internet for properties in which they might be interested.

But what are the most common search terms used by buyers when trawling the web for that purpose? An article in Landlord Today on the 21^st of November suggested a few answers.

It found that the following were the six most common search terms (ranked in this order):

1. garage;

• garden;

• parking;

• bungalow – reflecting the growing number of mainly older house-hunters who want single-storey accommodation;

• detached; and

• annexe – used by those who are looking for a multi-generational home or space for newly independent teenagers.

Homeowners call for a ban on gazumping

It’s the bane of any home buyer’s life – the risk of being gazumped. And now the overwhelming majority of buyers – four in every five – have had enough and are calling on the government to formally ban the practice.

An article in Property Reporter on the 21^st of November revealed the strength of home buyers’ feelings and pointed out that nearly a third of all property buyers had been gazumped in the past 10 years. Plus, out of these, almost 40% had wasted money on professional fees even though their purchase had fallen through.

Despite that strength of feeling, however, such is the competition in the market that 43% of house-hunters admitted they would think about gazumping a rival bidder.

Gazumping appears to be peculiar to England and Wales. It doesn’t happen so often in Scotland.

Landlords losing confidence

Landlords are more pessimistic than ever about running a buy to let business.

Figures released by the Residential Landlords’ Association (RLA) on the 20^th of November show a widening gap in just the past three months between those landlords looking to sell up and those planning to buy a property to let.

The RLA’s survey shows that more than 55% of landlords are less confident about the buy to let market in the third quarter of this year.

That declining confidence is underscored by the fact that 34% of landlords are looking to sell buy to let properties in the coming year (compared to just 22% two years previously), while only 13% are planning to buy at least one property (compared to 18% two years ago).

Subletting scams on the rise

It increases the risk of damage to your property, accelerates wear and tear, may contravene local authority licensing conditions, and may even invalidate your landlord’s insurance – but what can you do to prevent unauthorised or illegal subletting?

An article in Landlord News recently warns that illegal subletting is on the increase – especially with the growth of online accommodation-sharing platforms such as Airbnb.

But the article also suggests that regular inspections and visits to your let property may help to detect some of the more obvious signs – abnormal volumes of rubbish, for example, or the presence of individuals you have never named on the tenancy agreement.

Property renovation may be an attractive alternative to finding and moving into another home.

If you are the owner-occupier looking for more space for your growing family, renovation, a loft conversion or an extension is likely to be a cheaper solution than moving home. And the end result adds at least something to the capital value of your home.

If you are investing in buy to let property, renovation not only increases its capital value but may also boost your rental income. And a previously abandoned property, in need of renovation, is almost certain to be cheaper to buy.

As we explained in our Guide to Renovation in January 2019, however, there is a lot involved in any renovation project – not least of which is the need to keep your insurers fully in the picture.

Why is insurance important?

Your home insurance or buy to let insurance (if you are a landlord) is vital for protection against all manner of risks leading to loss or damage – even to the extent of the loss of the entire building and its contents.

But insurers attach conditions to the cover they provide and are especially concerned about the additional risks to which your property may be exposed while it is unoccupied during any renovation or building work.

For that reason, you need to inform your insurer before starting any renovation work on your property.

Renovation insurance

If the renovation works are substantial and involve any structural alterations to the property, your current insurers may increase your premiums or even remove the cover for any loss or damage caused by the building works. In the fine print of your insurance documents, you may find the particular clauses that relate to exclusions for any loss or damage resulting from structural alterations to your property.

But, of course, your home or let property continues to need building and contents cover while renovation works are in progress – and this is where purpose-designed renovation insurance steps in. The nature and scope of this standalone renovation insurance cover is described in greater detail on our website.

This ensures that you remain covered for any loss or damage resulting from the alterations that are made to your property and typically extends protection to the additional items likely to remain onsite during the works – machinery, plant, building materials and supplies, for example.

A further peril that is often overlooked is the risk of additional theft, loss or damage by virtue of your property being unoccupied for the duration of any renovation works.

A property that is left empty in this way for longer than a month or so is also likely to suffer a reduction in the scope and level of normal insurance cover (a property can still be classed as empty if there are tradespeople there during the day but no one actually living there). For that reason, renovation insurance typically incorporates an element of unoccupied property insurance to plug the gap.

While websites such as Real Homes may provide a detailed breakdown of the various costs likely to be incurred by different renovation projects, one element you might want to make sure you take into account is the need to keep your insurer fully informed.

The response may help you decide whether or not you also need the security and reassurance of specialist renovation insurance.