Property News Archive
More landlords claim on rent guarantee insurance
Monday 11th May 2009
The number of claims on rent guarantee policies has increased by a fifth, according to specialist insurance provider for the lettings industry, HomeLet.
Rent guarantee claims were up 20% in the first quarter of 2009 compared to the first three months in 2008.
The National Landlords Association had earlier reported that 37% of landlords currently have tenants in arrears.
HomeLet's managing director John Boyle said: "As the recession bites, a growing number of tenants are defaulting on their rent payments, leaving many landlords unable to keep up-to-date with their mortgage repayments.
"The figures from HomeLet and the NLA reveal a significant increase in the number of tenants not paying rent and should act as a wake-up call to the thousands of landlords who don't have rent guarantee insurance in place and to letting agents who currently don't offer these products to their clients."
In 2008, HomeLet paid out £2.8m in rent guarantee claims which mean that if a tenant can't or won't pay the rent for whatever reason, HomeLet will pay it.
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