This article was first released on the Total Landlord Insurance website
Buy-to-let property owners may be tempted to upgrade their landlord buildings insurance after seeing income from rent increase for the third consecutive quarter.
According to a survey by Paragon Mortgages, 34 per cent of landlords saw the amount of income they made in rent increase during the third quarter of the year, while just four per cent reported a fall.
It is the third quarter in a row in which more landlords have reported a rise in rents than a fall and also shows that the gap is widening, as just 29 per cent of landlords reported an increase in rental income in the second quarter.
With their properties proving such lucrative assets, it may therefore be wise for buy-to-let owners to make sure they have adequate landlord buildings insurance in place to cover costs in the event of damage.
It may also be the case that they need to seek a landlord insurance quote to cover new buy-to-let properties, with the booming demand for private rented accommodation likely to drive additional investment in the sector.
“With tenant demand only looking to increase further in the coming months, landlords are likely to continue to experience increases in their rental income, especially given that 49 per cent of landlords said they expect demand to further increase in the next 12 months,” said Nigel Terrington, chief executive of Paragon
“It is crucial then, with increases in demand, that investment continues to be made in the private rented sector, ensuring that it remains fit for purpose and continues to provide good quality and affordable housing to millions of tenants.”
Paragon found that just over ten per cent of landlords saw their rental income increase by between two per cent and four per cent during the third quarter, while 13 per cent of buy-to-let owners said rents had increased above that level.
