The first quarter of 2022 has seen a 37% increase in demand for landlord insurance, compared with the same period last year, according to new data from Quotezone. 

With landlords no longer able to claim the tax back on mortgage repayments, Quotezone says they are looking for additional income protection after being hit by the highest buy-to-let interest rates in seven years, on top of an increase in buy-to-let tax bills.

Data shows that without insurance, landlords risk losing up to 45% of their revenue through accidental or deliberate property damage.

Quotezone explains that property price increases are creating uncertainty within the buy-to-let market, with a surge in renters being priced out of the buyers’ market creating demand for rental properties and a boost in landlords.

With the incoming energy performance certificate (EPC) requirements, some landlords will also need to spend revenue to ensure their properties meet the new rules by 2025.

There’s also tension for tenants, according to recent ONS data, renters are paying almost 3% more this year for rental properties compared to last. 

Quotezone founder Greg Wilson says: “It’s unsurprising that landlords have been keen to protect their incomes over the last few months. Although the buy-to-let market has been blooming, it is about to come under pressure from increases in taxes, interest rates and EPC reforms which will require some landlords to make costly energy efficient updates to their property.”

“This will contribute to a squeeze in landlord income, so it’s essential that they take all the necessary precautions such as insurance, to help weather the storm and avoid any additional unexpected costs. Policies that include ‘rent guarantee insurance’ can also cover them if a tenant stops paying their rent.”

“That being said, renters must also consider what they can do to reduce costs and avoid any surprise bills as rent and utility bills continue to increase,” Wilson adds.