Buy to let professionals urged to consider insurance

21 October 2009

Written by Michael Aglony

With unemployment reaching 2.47 million people in the three months to August, landlords with buy to let mortgages are being warned to take out insurance to protect themselves from rent arrears.

Office for National Statistics data shows that the number of those without jobs in the UK grew by 88,000 from May - and the National Landlords Association (NLA) has indicated that now is a good time for property professionals to consider covering their income.

In addition to the official figures on unemployment, the NLA has conducted research showing that almost three-quarters of buy to let landlords have experienced rent arrears during their respective careers and 43 per cent of these cases have occurred in the last year.

Chairman of the organisation David Salusbury said: "Unfortunately we aren't out the woods with the economy just yet and thanks to redundancy and unemployment some tenants are struggling to pay their rent."

Earlier this month, Property Hawk website editor Chris Horne claimed that landlords are "generally being quite cautious" at this current time and are focusing on keeping hold of their tenants rather than thinking about raising rents considerably.

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