Data from insurance comparison provider, Quotezone.co.uk, shows a 41% drop in first time buy-to-let landlords in London in 2020, when compared to 2019. Off the back of recent news that almost 700,000 Londoners have moved out of the city, and Spareroom’s stats that rental demand in London dropped 43%, this should come as no surprise.
This decrease is in direct opposition to the rest of the country which has seen first-time landlords spike as high as 62%. I’ve shared these regional stats below for reference.
The demographic change is bound to affect the landlord insurance sector, says Greg Wilson, CEO of Quotezone.co.uk:
“Alongside the recent news that almost 700,000 Londoners have moved out of the city due to the pandemic, our data shows a 41% drop for first-time buy-to-let landlords in London in 2020 compared with 2019. This contrasts dramatically with the rest of the UK, with almost every other region showing a year on year increase, as buyers take advantage of the government’s stamp duty holiday.
“While Covid has created a temporary shopping spree within the housing market, 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 June. The region-specific data showing a decline in London could be the first signs of Covid-19’s true impact on the city’s property market and a potentially stark warning for the rest of the UK.
“However, while there has been a huge drop in demand for London properties, 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.”