Written By Em

Landlords with property in Outer London and the East Midlands are reporting the strongest levels of tenant demand in Britain, Paragon Bank research has revealed. 

The research of 983 landlords, carried out by BVA BDRC, showed 91% of landlords reported rising tenant demand in outer London during the second quarter of the year, with 67% reporting demand grew ‘significantly’. In the East Midlands, 86% of landlords reported rising tenant demand, followed by Wales at 82%. 

The weakest region for tenant demand was the North East, with 69% of landlords recording an increase in demand and 6% stating that demand fell during the quarter. 

Overall, 67% of landlords across Britain reported increasing levels of tenant demand during the second quarter, unchanged from the first quarter and an equal record high. 

Only 2% of landlords reported falling levels of demand, down from 4% last quarter.

The survey highlighted that strong demand was leading to rent increases – 87% of landlords said rental prices were increasing in their local market, with 51% stating that they planned to increase rents across their own portfolios within the next six months. 

Landlords with properties in Wales (94%), the North East (92%), Yorkshire & Humber (91%) and East Midlands (91%) were most likely to see rent increases in their local market. 

Louisa Sedgwick, Paragon Bank Commercial Director of Mortgages, comments: “Tenant demand shows no signs of slowing down in many parts of the country. With supply not growing quickly enough to keep pace, we are seeing rental inflation and that is likely to continue until we see demand more in balance with supply.”

General inflation was cited as the main driver for increasing rents – 74% of landlords looking to increase rents in the next six months said the rising costs of running a property was the primary cause, followed by alignment with local market rents (59%).

Insurance broker and risk management company Gallagher is launching Student Assist, a policy that covers universities and student accommodation providers with insurance cover against damage to their properties, and their resident students with personal belongings insurance. 

Student Assist addresses the issue that many students do not take out insurance cover on a personal basis, and in the event of an item being damaged or stolen, look to their accommodation provider to assist. However, traditional landlord insurance covers the property itself but not tenant belongings. The policy is designed to be bought by universities and student accommodation providers, who then provide it to their student residents as part of their all-inclusive offering. 

The insurance cover is available to students living on and off university campuses and protects their possessions whilst inside their accommodation including laptops, tablets, TVs and phones against damage, theft and loss. Damage to fixtures and fittings is also covered including fitted bathrooms and kitchens, boilers, curtains and shelving units are covered should an incident occur such as a fire or flood. 

Gallagher one of the leading providers of specialist insurance and risk management solutions to the education sector, insuring over a third of all UK universities, and this new innovative product builds on its current proposition. The firm also has a large client base and extensive experience in the landlord and property owners insurance market across the UK. 

By providing cover for both the accommodation provider and student under one policy, the product offers peace of mind to both parties, and helps minimise complexity in any claims settlements, and makes it easier for students to replace their most important items and minimise disruption to their studies.

Universities and accommodation providers choose the required cover for their student residents, who then access their cover and policy documents on a digital platform via their tablet, laptop or smartphone. The customer journey has been designed for digital natives, with the platform allowing students to make a claim and access on-demand support online.

According to the most recent annual Student Money Survey, 82% of students said that they were worried about making ends meet. With this in mind, insurance is likely to be low on the list of priorities for students, leaving them exposed to the cost of having to replace belongings if they are damaged or stolen. 

Student Assist addresses this and additionally gives students the option to insure their belongings when they are away from their accommodation with cover starting at £1.99 per month*. Wellbeing services are also offered as part of Student Assist, which have been designed to support the mental, financial and physical health of students and provide support during personal circumstances that could interfere with studies. Students can access wellbeing tools, counselling and financial support if and when they need it.

David Birch, Managing Director, SME and Partnerships, at Gallagher: “We’re delighted to be launching our new student proposition for universities and accommodation providers.’

“As the needs and expectations of students continue to evolve, it’s important that the insurance sector finds ways to innovate. In response to this, Gallagher has developed Student Assist to make the process of getting insurance easier for both providers and students, with each step carefully considered to drive more value to customers. 

“The cover has been designed to reflect the needs of today’s students, with a self-service portal to manage their policy in one place with on-demand support to help students with any queries they may have. 

“We look forward to engaging with Universities and accommodation providers, as well as our existing clients in the Education and Housing sector.”

*Based on insurance cover for a single item; eyewear under £200 or camera equipment under £1,000, or musical instruments under £600.

Policy limits and exclusions may apply, please see the policy wording for full details.