NatWest Landlord Insurance

Life can be complicated enough; for landlords it can seem even more difficult.

Many thousands of small-scale landlords invest their money and work hard within the private rented sector and the market has grown geometrically.

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Top of the Wish list for renters:

A recent survey of 3,000 renters revealed the most sought-after features that renters were happy to pay a premium for:

Pet friendly

28%

Prepared to pay

£24 extra

High internet
speed

21%

Prepared to pay

£19 extra

Gym facilties

41%

Prepared to pay

£20 extra

Laundry facilities

34%

Prepared to pay

£10 extra

Garden

32%

Prepared to pay

£10 extra

Social space

27%

Prepared to pay

extra

Secure bicycle storage

4%

Prepared to pay

£12 extra

Concierge

3%

Prepared to pay

£20 extra

Source: Landlord Today

Current Issues Facing UK Landlords

Since 2015, due to several tax changes and potential future government proposals there has been a 40% fall in buy-to-let purchases

  • 3% stamp duty land tax surcharge for additional properties
  • Phasing out of mortgage interest tax relief
  • A mandatory min 3 year term for private residential tenancies (proposed)
  • Tenancy security deposits capped at max 6 weeks rent from August 2018 (in accordance with the Tenant Fees Bill)

From August 2018, under the Deregulation Act 2015, landlords will be unable to end a tenancy using a Section 21 eviction notice if there are any outstanding tenants’ disrepair complaints referred to a local authority.

To legally serve a Section 21 landlords must at the start of a new tenancy provide tenants with:-

A valid Energy Performance Certificate

An annual Gas Safety Certificate

The government's How To Rent guide

Where to buy in the UK

Recent research by Gatehouse Bank (July 2018) took into account the second tier of economic indicators including how long available rentals have been on the market, as well as the affordability ratio between average salaries and rents.

  1. Bootle, Merseyside
  2. Inverness
  3. Stoke-on-Trent
  4. Barnsley
  5. St Helens

Overall, the study found properties available to rent across the UK have been sitting on the market for 197 days on average. Meanwhile the typical yield is 4.6% and the average proportion of earnings to rent is 37%.

Source: gatehousebank.com

Recent research by Gatehouse Bank (July 2018) took into account the second tier of economic indicators including how long available rentals have been on the market, as well as the affordability ratio between average salaries and rents.

  1. Winchester
  2. Cambridge
  3. Chichester
  4. Warwick
  5. Reading

Overall, the study found properties available to rent across the UK have been sitting on the market for 197 days on average. Meanwhile the typical yield is 4.6% and the average proportion of earnings to rent is 37%.

Source: gatehousebank.com

One landlord surveyed left with £16,000 worth of damage after a tenant left a property.”

Challenges

£5bn+

a year lost due to property damage and unpaid rent.

£4.5bn

property damage

£0.9bn

rent arrears

51%

of landlords have problem tenants

  • 46.6% property damage
  • 40% non-payment of rent of whom 46% of tenants will not need to pay the arrears

Source: HomeLet Landlord Survey 2017

Evicting problem tenants can take up to 17 weeks and ‘cost a lot of money’.

Ave 118 days for court-appointed bailiffs to remove tenants

21,429 possession claims brought to court last year

29% (6,260) ended in eviction by bailiff

Source: Landlord Today

When a big outlay comes around, some landlords find themselves in trouble, and there’s very little protection offered from the government against these things.”

Alexandra Morris, Managing Director at MakeUrMove

Geographically, what areas should landlords avoid for unpaid rent and damage costs?

Overall, the worst areas are:

  • Manchester
  • London

Worst areas for property damage:

  • Wrexham
  • Chelmsford

Rent arrears top 5 Worst areas:

  • Cambridge
  • Oxford
  • York
  • Newcastle
  • Manchester

The Residential Landlord Association recommends that the appropriate insurance should be in place for Building, Public Liability and Rent Guard (rent insurance).

Source: The Residential Landlord Association

Given these potential pitfalls, life as a landlord can seem daunting.

Our simple yet comprehensive landlords’ insurance cover, which differs from standard home insurance, aims to make your life as a landlord as simple and straightforward as possible. By giving you complete peace of mind, we can help you maintain your work/life balance.

As a landlord what type of insurance do I need?

  • Standard home insurance is not enough
    • It is not suitable for rented properties
    • And will not provide the full cover you need
  • NatWest Landlord Insurance gives you complete peace of mind
  • We can help maintain your cashflow when things go wrong

Our specialist insurance offers:

Optional extras

Increase Public Liability and Property Owners Liability cover up to £5m

Accidental damage cover

Loss of rent after a fire or flood

Legal expenses cover up to £250,000

Subsidence cover

For full details on our Residential Landlord Insurance please read the Landlord Policy Document

What happens if I need to claim?

NatWest is here to help. A dedicated claims handler will look after your claim from start to finish.

Thinking of adding properties to your portfolio?

Our flexible cover lets you add further properties:

  • manage them all on your existing policy
  • enjoy discounted rates
  • have a convenient, single renewal date

NatWest Landlord Insurance is underwritten by U K Insurance Limited

Please read policy booklet for full Terms & Conditions

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* Please note, if you select a Bank Holiday, we will call you on our next working day.
Our operating hours are 9am to 6pm Monday to Friday, excluding bank holidays.

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Request a callback

* Please note, if you select a Bank Holiday, we will call you on our next working day.
Our operating hours are 9am to 6pm Monday to Friday, excluding bank holidays.

Thanks, we'll be in touch shortly