Good news for landlords, says expert

Date:Monday 14th September 2009
Author: Max Freedman

The fact that rent payments have risen over the past six months is clearly good news for landlords, observed an industry commentator.

Chris Horne, editor of Property Hawk, commented that the rise of 2.2 per cent over the last two quarters is positive news, but noted that many landlords are dropping their landlord insurance to increase their profit margin.

He dismissed this as a false economy because the liability that they have on their properties could be millions of pounds in certain situations, so insurance can end up being a money saver.

"Whilst it is possible to cut landlord insurance costs by shopping around, it is really not worth stopping or not being insured at all," he added.

Mr Horne also encouraged landlords to look at tenant insurance if they are worried about not receiving rent from people living at their properties.

Recent research by Direct Line for Business indicated that 30 per cent of landlords are concerned that their tenant might not be able to pay up.