Warning over buy-to-let insurance

Posted: 12 Apr 2007 11:29:19 GMT


            Property News - Warning over buy-to-let insurance

An increase in the uptake of buy-to-let mortgages is prompting concern that many UK landlords might not have adequate insurance cover, leaving themselves vulnerable to loss of rental income.

An increase in the uptake of buy-to-let mortgages is prompting concern that many UK landlords might not have adequate insurance cover, leaving themselves vulnerable to loss of rental income.

Research carried out by Sainsbury's Home Insurance indicates that the number of buy-to-let mortgages in the UK has increased by over 20 per cent since 2005, suggesting that there has been a substantial increase in the total number of landlords.

Overall, it is estimated that there are almost three million privately rented properties in the UK at a total value of £510 billion, raising fears that investors need to have proper insurance protection. In London alone there are thought to be over 509,000 rental properties, worth more than £146 billion.

Robert O'May of Sainsbury's Bank stresses that landlords need to protect their investments.

"There has been huge growth in the number of properties rented out," he stated. "It's therefore important for landlords to pick a good home insurance policy to protect their investments."

Paragon Mortgages predicts that rental activity will continue to grow in the UK, estimating that the private rental sector will account for 20 per cent of homes within the next ten to 15 years.


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