Insurance News Archive

More tenants 'checking out landlords buy to let insurance holders'

There has been an increase in the number of current and prospective tenants checking out landlords buy to let insurance holders, one sector specialist has asserted.

David Underwood, a lettings consultant at Darwoods in St Albans, Hertfordshire, told the Observer that more tenants are now asking about the backgrounds of landlords buy to let insurance holders.

In addition, many are keen to know where their deposits are being held, as these have had to be stashed in a government-approved tenancy deposit scheme since 2007.

"As the deposit typically amounts to six weeks' rent, we are finding fewer tenants are comfortable with this arrangement, although in the vast majority of cases the lettings agent keeps hold of the funds," Mr Underwood told the publication.

Meanwhile, Tom Entwistle, editor of Landlordzone.co.uk, recently said that the tenancy deposit scheme helps to give protection to vulnerable renters who cannot put pressure on their landlord.

26 Oct 2009