UK Private Landlord Insurance 2018

"UK Private Landlord Insurance 2018", report explores the buy-to-let and residential landlord sectors, and the factors affecting those with investments in these markets. The report discusses how insurers will fare following the introduction of new regulations and the tightening of rules, which is set to impact landlords, and in turn, their need for insurance cover. New regulation is highlighted, as well as key issues which insurers will need to consider and address over the next few years.

The profile of landlords has shifted in the last couple of years, following a raft of more stringent regulation. The housing crisis has led to pressure on the government to slow the rapid rise of buy-to-let (BTL) mortgages, particularly in 2016, and look to balance out the market by giving more relief to first-time buyers, at the expense of portfolio landlords. The recent changes focus on increasing the tax paid when purchasing multiple properties (stamp duty, for example), reducing tax relief, and introducing more stringent affordability checks, meaning landlords are being squeezed from all sides.


– A recent influx of regulation has transformed the overall landlord market, making it harder for potential landlords to get credit and increasing taxes if they do.

– This has started to push single-property owners away from the market, with professional landlords taking over.

– GlobalData estimates the size of the insurance market is £807.3m, reflecting steady growth since 2016 (£759.0m).

– Underinsurance remains the greatest opportunity for insurers, with over 30% of landlords not having specialist cover.

Reasons to buy

– Keep up-to-date with the latest developments occurring in the private landlord market.

– Become informed of the latest issues affecting customers and the subsequent impact on insurers.

– Be prepared for how regulation will influence the landlord space over the next few years.

– Understand the demographics of landlords and their insurance needs.

– Keep up-to-date with new regulation and taxes affecting the market.

Companies mentioned






Direct Line






Table of Contents

Table of Contents


1.1. Summary 2

1.1.1. The demographics of the market are changing as regulation tightens 2

1.2. Key findings 2

1.3. Critical success factors 2


2.1. A raft of regulatory changes have altered the state of play in the residential landlord industry 6

2.1.1. The stamp duty hike has made property a more expensive investment 6

2.1.2. Capital gains tax and tightened lending criteria put a squeeze on landlords 7

2.1.3. Portfolio landlords are being targeted by government policies 8

2.1.4. More changes are incoming as the government continues to tackle the housing crisis 9

2.1.5. Opposition political parties are proposing a range of alternative policy ideas 9

2.1.6. ‘Generation rent’ locks in millennials to private renting 10

2.1.7. Stamp duty is landlords’ biggest concern 11

2.1.8. Poor management by letting agents is the biggest issue for tenants 12

2.2. Property price rises are slowing as Brexit stirs uncertainty 13

2.2.1. Property prices continue to grow, but at a slower rate 13

2.2.2. Buy-to-let mortgages 18

2.3. Real wage growth continues to fall 20


3.1. The residential landlord insurance market is estimated to be worth over £807m in GWP 21

3.2. Insurers need to respond to an evolving profile of UK landlords 21

3.2.1. The government’s response to the housing crisis is shifting the shape of the landlord market 21

3.2.2. One in four landlords are under the age of 35 22

3.2.3. The number of landlords is rising, led by casual or ‘accidental’ landlords 22

3.2.4. The gig economy is creating new landlords 23

3.3. Underinsurance remains prevalent 25


4.1. The key players 26

4.2. Direct Line 26

4.3. Lloyds Banking Group 27

4.4. Aviva 27

4.5. RSA 27

4.6. AXA 28

4.7. Key elements of cover 28

5.1. Landlord apps are mainly focused on management 29

5.1.1. SPCE aims to modernize student renting 30

5.1.2. AXA helps landlords stay on top of repairs 31


6.1. Abbreviations and acronyms 32

6.2. Methodology 32

6.3. Bibliography 32

6.4. Further reading 33

List of Tables

List of Tables

Table 1: Stamp duty ratesfor buy-to-let investors, pre- and post-April 2016 7

Table 2: Changes in stamp duty owed on buy-to-let property, by house value 7

Table 3: Total UK mortgages by type, percentage split 19

List of Figures

List of Figures

Figure 1: Stamp duty edges out CGT as landlords’ biggest concern 11

Figure 2: Poor management and communication lead to the most complaints 12

Figure 3: UK property prices rose steadily between 2012 and 2017, but growth has slowed 14

Figure 4: Quarterly property growth rates have dipped below the six-year average 15

Figure 5: Consumer confidence in the UK economy is low, despite an uptick in 2018 16

Figure 6: UK GDP growth has fallen since 2014 17

Figure 7: The number of buy-to-let mortgages crashed after Q1 2016, but remortgages are on the rise 18

Figure 8: The buy-to-let market suffered a slump following Q1 2016 19

Figure 9: Real wages are falling behind nominal wages as inflation outstrips wage growth 20

Figure 10: Digitalization is key to the sharing economy 24

Figure 11: Direct Line was the UK’s largest home insurer in 2017 26

Figure 12: Direct Line was the UK’s largest home insurer in 2017 29

Figure 13: Direct Line was the UK’s largest home insurer in 2017 30


Discounts available for multiple report purchases.
+44 20 7947 2745

Join our mailing list

Saved reports