Landlord insurance: optimism up
Optimism amongst those who have landlord insurance has reached its highest point for almost four years, according to new figures.
The National Landlords Association (NLA) has revealed that 65 per cent of landlords surveyed in the second quarter of the year rated the prospects of their own lettings business over the next three months as either ‘good’ or ‘very good’.
Confidence amongst those with landlord insurance has been steadily increasing since it hit its nadir of 38 per cent in the second quarter of 2008, having been happily riding along in the 70s a year previously before plunging downwards.
David Salusbury is the chairman of the NLA, and he remarks that “after a challenging few years, it is encouraging to hear that the majority of landlords are feeling positive about their lettings business and the overall state of the private-rented sector.”
He continues to add “the increasing availability of buy-to-let mortgages and strong demand for rental accommodation is further stimulating positive sentiments, with rent arrears appearing to stabilise and void periods decreasing in recent months.”
People with buy to let insurance who rent to students will soon be coming to the end of their annual void period as the start of the university year is just around the corner and demand is expected to remain high, as Ian Potter from the Association of Residential Letting Agents (Arla) notes that 74 per cent of members asked thought there would be more tenants than properties available.
However, Arla expects the buy to let property insurance owners who are members of the organisation to remain fair to prospective tenants, as it has launched a list for students to follow to make sure they don’t get stung by unscrupulous landlords.
Students should have plenty of choice when they move though, after the Department of Communities and Local Government (DCLG) announced that 17.4 per cent of the entire English housing stock is in the hands of people with landlord insurance.
This news is welcomed by Nigel Terrington from Paragon, who remarks that “more people are now relying on the PRS [private rented sector] than ever before and we are certainly seeing a change in perception towards the sector.
The increase in PRS homes is fuelled by a combination of landlords buying property with cash and buy-to-let mortgages, people letting out homes they have inherited and homeowners deciding to let their property.”