UK Private and Commercial Landlord Insurance 2016

UK Private and Commercial Landlord Insurance 2016

Summary

The residential landlord market provides a mixed picture in terms of its current state and future outlook. While it has undergone significant growth over recent years, the market is ripe for change following government plans to raise taxes on secondary properties and increase stamp duty. Landlords may also be vulnerable to interest rate changes, which have caused some financial providers to revamp their lending criteria and introduce tougher restrictions. This is a concern for insurers that have previously enjoyed the buoyancy of the market. Insurance providers are primarily in the market for accidental landlords – those acquiring properties by ways other than outright purchase. And as lending rules strengthen and it becomes increasingly difficult to attain a buy-to-let mortgage, this may become a principal route to market for insurers. However, although the number of those offering rented accommodation through a secondary home has declined from last year, providers are adamant the market’s value will continue to grow, especially as investors rush to buy a second property and attempt to beat the tax hikes.On the commercial landlord side, the firms involved in the real estate and rental space are moving towards the expansion of investment in commercial property outside of London. This is becoming a preferred option due to the prospect of gaining a better return on the investment, including more financial gain or an improvement on the space acquired for rental purposes, such as a larger office area at a reduced cost than if the space was to be rented in the capital.

Key Findings

• The proportion of consumers offering rented accommodation in the UK through a secondary property has fallen year-on-year from 60.3% in 2014 to 56.5% in 2015.
• Contacting the insurer directly is the main distribution platform for private landlords, with 43.0% of consumers opting to purchase insurance via this channel.
• Telephone is the most popular method of arranging cover in the real estate and renting space, with 46.9% of SMEs opting for this medium.

Synopsis

Verdict Financial’s “UK Private and Commercial Landlord Insurance 2016” explores the buy-to-let and commercial property sectors, and the factors affecting those with investments in these markets. The report discusses how insurers will fare following the introduction of new regulations and the tightening of rules, which is set to impact landlords and in turn their need for insurance cover. New regulation is highlighted, as well as key issues insures will need to consider and address over the next few years.Reasons To Buy

• Keep up-to-date with the latest developments occurring in the private and commercial landlord markets.
• Be informed of the latest issues affecting customers and the subsequent impact on insurers.
• Be prepared for how regulation will influence the landlord space over the next few years.