Buy-to-let landlords are increasingly turning to rent insurance as they struggle to protect themselves against soaring arrears in the wake of the pandemic and the cost-of-living crisis. Mashroom, a lettings platform, said sales of its rent insurance were up 400% month-on-month in February. Demand for rent insurance first surged after the pandemic eviction ban made it harder for landlords to remove problem tenants. Now a worsening court backlog means they face waiting nearly a year for an eviction just as the cost-of-living crisis is hammering tenants' ability to afford their rent and increasing the likelihood of arrears. David Votta of Votta Sales & Lettings in Kent said: “We have seen a huge increase in landlords taking out rent insurance. Before the pandemic I would say 40% took a guarantee option. Now it's 95% of my listings.” Maxine Fothergill, president of the lettings body Arla Propertymark, added: “The pandemic has made the situation 10 times worse.”
Buy-to-let investors are seeking protection as the eviction system fails
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