Buy to Let Insurance

Make sure you are insured against arrears #buytolet

With rents on the rise and demand for rental property increasing, it seems like a golden age to be a buy to let landlord. There is one cloud on the horizon though that all landlords should consider.

Figures relating to arrears and evictions are also on the rise. The number of tenants with with more than two months arrears increased by a massive 11,400 in the last 12 months and evictions rose by 11%  in the same period. So if the risk of default is increasing, what are your options?

Quite simply, the best thing to do is insure against that risk. Most comprehensive buy to let insurance policies will allow you to insure against loss of earnings and legal costs if your tenants default and are unable to pay. This low-cost addition to your monthly outgoing will protect your revenue if a tenant defaults and cover your legal costs if the situation deteriorates.

Rent is on the rise but so are arrears #buytolet

There is mixed news for our buy to let customers this week.

Rents in England and Wales registered their largest monthly increase for a year, up by 1.2% to an average of £713 per month for August. This means that the average monthly rent has now surpassed the previous record of £705 which was set in July 2011.

The biggest increases where in London and the South West where they rose by around 1.5%. The average London rent stands now at £1,025 per month. Don’t forget that a comprehensive buy to let insurance should protect you from the worst if your tentant stops paying. Call us now to learn more.

It’s not all good news for landlords though as arrears also climbed, up for the first time since April of this year. As of the end of August 10.7% of all rent was recorded as late or unpaid.

Best places in UK to be a landlord

For the benefit of our buy to let insurance holders and courtesy of the Daily Telegraph we present this unnecessarily complicated run down of the UK’s most in demand rental towns.

No surpises for guessing that London comes out tops with a ratio of people searching to available rooms of 8.9.

As the Telegraph’s own list is a challenge to navigate, here’s the run down…

1. London 8.9

2. Luton 8.8

3. Cambridge 7.9

4. Milton Keynes 7.4

5. Portsmouth 6.6

6. Oxford 6.3

7. Watford 6.2

8. Swindon 6

9. York 5.9

10. Brighton 5.7

So – if you have an urge to invest and some buy to let cash burning a hole in your pocket – here’s where to head…