LETTINGSnews
LANDLORD RESEARCH
LANDLORD INSURANCE
Regulation
Big freeze could cost landlords
Landlords without adequate breakdown, failure or damage
consternation
insurance could end up to your boiler and central
paying out thousands of heating system.”
pounds to repair damage HomeLet’s Emergency
caused by freezing water and Assistance is also available
Regulation tops introduced in recent years, leaks from tanks, pipes or as a separate policy that
most landlords’ including EPCs, tenancy deposit heating systems. With covers boiler and heating and
list of concerns protection and HMO licensing. temperatures well below includes a 24-hour helpline
for 2010, “But regulation can also impact freezing point, pipes are most for tenants to call in an
research from landlords indirectly. For example, at risk of bursting and boilers emergency. HomeLet will
Paragon if the FSA is given the power to of breaking down through respond within four hours,
Mortgages has revealed. Nearly six regulate the buy-to-let market, increased usage. If the burst contacting one of their
out of 10 (58 per cent) landlords then buy-to-let mortgage pipe is in the attic water can professional, qualified
said that they were worried about availability may decline and it cascade though the house contractors on the landlord’s
the level of regulation required in could become more expensive to bringing down ceilings. behalf. If the problem can’t
relation to the running of their borrow. Any extra costs are likely Landlords may also have to be solved then and there and
property business during the year. to be passed on to the ultimate deal with the difficulty and the tenant needs emergency
Landlords are already heavily end user – the tenant – and could expense of having to find accommodation, the policy
regulated with an estimated 50 price the private rented sector out and call out a reputable covers the cost up to £250.
Acts of Parliament and 70 sets of of the reach of some households.” emergency contractor
regulations governing the PRS, but With buy-to-let lending levels at short notice.
more could be on the way. subdued and mortgage product HomeLet, is urging agents
The Government has recently availability limited, 37 per cent of to ensure that their landlords
concluded its consultation on the landlords also expressed concerns have the cover they need to
launch of a national mandatory about how they will fund property protect them against the
registration scheme for landlords purchases in 2010. risks associated with renting
and will soon report its findings. The buy-to-let sector is marked a property. MD John Boyle,
In addition, HM Treasury is by a lack of competition, with just explained, “We’ve recently
currently consulting on whether two lenders accounting for an launched Landlord’s
the FSA remit should be extended estimated three quarters of current Insurance+, a specialist
to regulate the buy-to-let sector. new business. Other concerns landlords policy
This is likely to tighten buy-to-let included retaining tenants which includes
product availability and increase (32 per cent), finding tenants Emergency
the cost of mortgages, which will (31 per cent), tenant disputes Assistance as
have a knock-on for residential (24 per cent), and meeting standard, providing
property investors and tenants. mortgage payments (12 per cent). cover for emergencies arising
John Heron (pictured), MD, from plumbing and drainage,
Paragon Mortgages said, “It is not
‘Six out of ten
electricity supply, cooking
surprising that regulation tops the systems, security, lost keys
list of landlords’ concerns for the landlords said and roofing, down piping and
year. They already have to comply
with a myriad of regulations, which
they are worried
guttering at no extra cost.
There is also the option to
seem to be regularly added to or
about the level
upgrade your policy to cover
amended by the Government. sudden and unexpected
Several new statutes have been of regulation.’
LETTINGS INSURANCE
Agents, protect your reputation!
Letting agents let investors is a quick way to lose has been too superficial and unemployment. The knock-on
could damage clients and their portfolios,” said common sense has not been economic effect on landlords will
themselves as Michael Portman, MD (pictured). applied to the individual situation. reflect directly on the agent.
much as their “There may be more optimism Although letting agents are not Therefore if rent and legal
landlords by about the economy, but required to register on the Anti- expenses insurance policies can
failing to carry unemployment is likely to rise for Money Laundering register by the be easily set up, administered and
out detailed referencing or some time yet.” LIS says that some end of January there is going to claimed upon if necessary by the
arranging insurance to cover agents are still not careful enough be a greater emphasis on agents landlord, the proactive agent will
problems with defaulting tenants. about referencing. Perversely, as to ensure that prospective tenants win through.
Let Insurance Services, (LIS), says well as allowing tenants with a are who they say they are by “The message has to be that
that the year ahead that is likely to poor credit history to take up a requesting photographic ID and good tenant referencing and
see rising unemployment. “Failure tenancy, poor quality referencing a proof of residence from tenant managing the risk of rent payment
by agents to operate and advise practice can also lead to applicants. However, even the best problems can provide their
on the best risk management acceptable tenants being lost to referencing has to cope with a mis- landlords with greater peace of
available to landlords and buy to a landlord because the referencing firing economy and rising mind,” said Michael Portman.
42 FEBRUARY 2010 PROPERTYdrum
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