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Landlords Can Still Profit From Booming Rental Market


Tuesday, September 23, 2014

Landlords With Rent Protection Insurance Have Even More Profit To Smile About

Landlords With Rent Protection Insurance Have Even More Profit To Smile About

Rent Protection Helping Landlords To Profit From PRS Letting Boom

Private rental sector landlords in the UK are profiting from the booming rental market, with income generated from tenant’s rental payments estimated to exceed £32 Billion (GBP) this year, and landlords with Rent Protection Insurance have even more to smile about because they have been pro-active in protecting rental incomes.

New research conducted by Direct Line for Business showed that landlords with properties in London profit the most as they collect the largest proportion of private rental sector (PRS) rental income in England at around £14 Billion (GBP) per year, more than the combined regions of North East, East & West Midlands, Yorkshire and East Anglia put together.

The research reveals that London and the Home Counties dominate the PRS rental income charts, with the highest average rents charged in central London – £19,596 (GBP) per year or £1,633 (GBP) per month. In fact, 44% of the UK’s PRS rent is generated in London.Elmbridge in Surrey has the highest private rented sector rental prices outside of London, worth £18,948 (GBP) per year or £1,579 (GBP) per month. Tenants in Leeds, Yorkshire pay the greatest amount of rent in any other UK city, with annual private rent totalling £565 Million (GBP), followed by Birmingham on £521 Million (GBP) and Manchester on £401 Million (GBP).

PRS landlords are able to minimise rental default by comprehensively tenant referencing all potential tenant applicants and utilising Rent Protection Insurance to ensure rental income remains uninterrupted should the tenant’s employment or financial circumstances suddenly change during the course of the tenancy. Rent protection means that the landlord will still receive income even if the tenant is unable to pay, this simple insurance policy could make the difference between profit and loss for many landlords.

In terms of the proportion of private rental sector properties to private residential properties, Bournemouth has the largest concentration with 30% of households being in rented accommodation, whereas the Isles of Scilly has 29.7 % and Brighton and Hove 29.6%. Within the Greater London area, the proportion of private rental sector properties equates to 30.7%.

Despite the dominance and distortion caused by rental prices in London and the Home Counties, landlords are still making healthy rental incomes, with Rent Protection Insurance acting as the landlord’s (and tenant’s) safety net.

Many UK regions have higher than average rental prices for private rental sector properties, Bath, North Somerset, and the Cotswolds for example, can generate annual rental incomes of more than £11,000 per year, per property. Landlords operating in these areas without utilising rent protection insurance could lose out on some of this valuable rental income should anything happen to change their tenant’s circumstances.

Rent Protection Insurance from Legal 4 Landlords

Rent Protection Insurance from Legal 4 Landlords


This was written by Mike Clarke. Posted on at 11:30 am. Filed under Insurance. Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. Follow comments here with the RSS feed. Both comments and trackbacks are currently closed.