Tag: Quotezone

14% increase in first-time buy-to-let landlords

With the pandemic driving interest rates into the ground, it’s only natural that people are searching for a more lucrative return on their investments. 

Research by insurance and personal finance comparison experts Quotezone.co.uk reveals that 85% of those looking for landlord insurance own just one property – suggesting this is a buy-to-let investment rather than their full-time job.

The data, which covers a sample of landlord insurance quotes from 2019 to 2020, suggests redundancies and furlough has perhaps created an emerging trend of small and first-time landlords. 

Although the majority of the 19,000 landlords Quotezone.co.uk sampled have owned their property for five years or more, there is a recent spike emerging, with properties owned for ‘less than 1 year’ in Scotland seeing a 14% year-on-year increase during the pandemic. 

The data also showed that the average age of a landlord in the UK is 51 – these people are likely at least a decade from retirement and looking to invest their skills and savings in a more long-term asset that may offer higher returns than other investment options out there.

And with only 52% of landlords using cash to purchase during 2020, the lowest figure on record* – buy-to-let is an increasingly viable option for many UK buyers, even those with a relatively modest amount of capital to invest.

The average rent landlords can expect from their investments differs dramatically across the UK, with data from Statista revealing that Greater London has the highest average at £1,556, while the cheapest region is the North East where the average rent is just £539. The UK average is currently £832.

The best interest rate available from savings accounts currently stands at just 3%. By contrast, the average rental yield in the UK is currently 5.2%***, and buy-to-let property in some parts of the country even offers rental yields in excess of 7%.

However, there are overheads a landlord needs to consider such as a managing agent, utilities inspection reports and certificates, landlord licence (£500 every 5 years), safety equipment such as fire alarms and extinguishers and routine maintenance to the property.  Landlord insurance is another vital element but by comparing policies on comparison platforms, there are competitively priced policies available.

The research also showed that the majority of tenants were employed professionals followed neck-and-neck by short-term Airbnb lets and DSS / unemployed occupants.

Founder of Quotezone.co.uk, Greg Wilson, comments: “It is interesting to see that 85% of people in our data, who class themselves as landlords, own just one property – suggesting that actually first-time landlords with other occupations could be adding this asset to their portfolio as an additional revenue stream or an alternative to pension investments.

“Covid has created a temporary shopping spree within the housing market with the government’s stamp duty holiday, however I fear this temporary boost in sales may be short-lived as the economic aftermath of the pandemic is yet to be revealed and the stamp duty holiday is due to expire at the end of next month.

“However rental properties haven’t gone untouched by the crisis with many tenants on furlough or facing redundancies and social distancing creating physical barriers to the properties making routine maintenance and repairs difficult. 

“It is perhaps more important than ever to ensure landlord insurance policies are thorough, accurate and up to date so that landlords are fully protected should a claim be needed.” 

Policies vary from one landlord insurer to another, but in general can cover any damage to the building caused by insurable events like fire, flood, storms, subsidence, theft and vandalism. 

Landlord contents insurance, landlord liability and unoccupied property insurance can also be added as well as extra tailored features such as rent guarantee insurance, landlord home emergency cover and legal expenses.

Recommended by 97% of reviewers, Quotezone.co.uk helps around 3 million users every year, with over 400 insurance brands across 60 different products

More than half of drivers break speed limit in residential areas

More than half of Britain’s drivers routinely broke the speed limit in built-up areas in 2020, according to new figures from the Department for Transport.

During the height of the first lockdown – April to June 2020 – 63% of motorists travelling on 30mph roads exceeded the speed limit. Drivers breaking the speed limit by 5-10 mph never dropped below 19% last year but spiked to 26% during the first lockdown.

Motorway driving echoed this behaviour although motorists broke the speed limit slightly less but tended to do so by 5 or 10mph in greater percentages. Single carriageway users (60 mph limit for cars) were more likely to comply with speed limits, with 10-17% breaking the limit and just 1-3% exceeding it by 10mph or more. 

Night drivers were most likely to break the 30mph speed limit in built-up areas, with 75% speeding between the hours of midnight and 6am, compared with an average of 37% of motorists during daylight hours.

The figures are based on driver behaviour on roads with free flowing traffic where there are no impediments such as bends or steep climbs. The report is based on nearly 40,000 vehicles observed on roads in residential areas, around 150,000 on motorways and 21,000 on single carriageways.

Responding to the new data, Greg Wilson, founder of leading car insurance comparison platform Quotezone.co.uk, says: “It’s staggering to realise that half of all motorists are breaking the speed limit across motorways, single carriageways and residential 30mph zones, but it’s the speeding offences that occur in those built-up areas that could potentially be the most dangerous, because far more accidents happen on these smaller roads than on motorways and dual carriageways.

“While some motorists may assume that there won’t be pedestrians or cyclists on the road after dark in these 30mph zones, there’s always a heightened risk of an accident when a driver exceeds the speed limit, so it’s worrying that the Department for Transport data suggests 75% of motorists are taking this risk.

“Even if an accident doesn’t occur, if drivers in Great Britain are caught speeding on these roads, they face a Fixed Penalty Notice of £100 and three penalty points on their licence if they exceed the limit by a marginal amount, or six points and a fine of up to £1,000 if they’re doing more than 41mph in a 30mph zone.

“If convicted, it is important to be honest and fully disclose the offence to your insurance provider, because failure to do so can result in the policy being invalidated, meaning you won’t be covered. 

“Some of our providers offer car insurance policies with competitive rates for convicted drivers which can help motorists find an affordable premium, but it probably goes without saying that the best way to keep your car insurance price low is to obey the speed limit in the first place.” 

Penalty points can add anything from 5% to 25% to your car insurance premium, depending on the number of points your licence has been endorsed with.

Recommended by 97% of reviewers, Quotezone.co.uk helps around 3 million users find better deals on their insurance every year, with over 400 insurance brands across 60 different products including niche items like telematics insurance and classic car insurance.

Double disaster: flooding can invalidate both car and home insurance

With The Met Office forecasting this week’s weather will be a mix of floods, snow and gale-force winds, motorists and home owners are warned to take extra care by preparing where possible and being aware of what their insurance policies do and don’t cover when protecting their home and car.

While motorists with fully-comprehensive car insurance should be covered for any damage caused by debris during high winds and storms, they may not be covered for water damage caused by driving through flooded roads.

One of the UK’s largest car and home insurance comparison sites, Quotezone.co.uk, warns that some car insurance policies include clauses advising policyholders not to drive through flooded roads, and may specifically exclude from coverage any water damage to the car if the motorist goes against this advice.

Flood damage can also affect your home and if you haven’t declared your location accurately your policy could be invalid.  If your house is located within 400 metres of a river, stream or coastline you will need to have informed your insurance provider.  Even if you’ve never experienced flooding yourself, your house could be classed as a ‘flood-risk property’.

Online flood maps – such as this one from the UK government – allow homeowners to check their property’s level of flood risk before taking out buildings insurance or building and contents insurance.

Many insurance providers do take anti-flood doors and other permanent flood defence features into account when calculating insurance premiums – provided they meet the appropriate industry standards and have been installed by an industry professional.

With the worst of the winter weather ahead it is important for policy holders to be aware of the legalities, keep their insurer up to date and protect their policies both home and car.

Insurance comparison expert and Founder of Quotezone.co.uk, Greg Wilson, advised: “Some car insurance providers stipulate that motorists must not drive the vehicle through flooded roads, and this clause is often present in fully-comp policies as well as less comprehensive levels of cover – rendering the policy invalid should this advice be ignored.

“With the added possibility of snow and ice, it’s also sensible to make sure your car is roadworthy by checking tyres, oil, water and petrol before you set off.  Investing in a winter emergency survival kit for your boot is also advisable; thermal blanket, torch, phone charger, emergency food/water rations, first aid kit – some of our insurance providers offer these as standard.

“With home insurance it’s always best to be honest with your provider, use the online flood map tool if you’re unsure of the exact distance to nearby rivers and double check your home for any potential issues especially in relation to the colder weather, such as added insulation for pipes.” 

Quotezone.co.uk compare prices from over 110 UK car insurance providers and over 50 home insurance proivers – helping over 3 million users find a more competitive deal on their insurance. 

Advice on both home and car insurance products and suggestions for surviving the winter weather can be found on the guides section – quotezone.co.uk/guides.