Changes in personal circumstances rather than investment plans could push more homeowners into the private rented sector, with new research suggesting many may be unprepared for the insurance implications.
A study of 2,000 UK adults commissioned by specialist landlord insurance broker Everywhen found that 64% of those who would consider renting out their home would do so because of a change in their personal or property circumstances.
By comparison, 21% said the prospect of earning additional monthly income would be their main motivation for becoming a landlord.
The findings come against a backdrop of 2.88 million unincorporated landlords declaring rental income in Britain in 2024/25. Separate government research in England found that 37% of landlords had originally bought their first rental property to live in themselves rather than to let.
MOVING HOME A KEY TRIGGER
Almost a third of respondents, 30%, said they would consider letting a property they no longer used to generate an income from it, including after moving in with a partner.
The proportion rose to 40% among those aged 35 to 44, compared with 18% of people aged over 65. It was also higher among respondents in Edinburgh and London, at 44% and 43% respectively.
Inheritance could also bring more people into the rental market, with 12% saying they would consider letting an inherited property. A further 9% would contemplate renting out their home if they were unable to sell it.
Relocating for work would prompt 7% to consider letting their property, while 6% said they might do so during the period between buying a new home and selling their existing property.
INSURANCE KNOWLEDGE GAPS
Everywhen’s research also identified uncertainty among potential landlords about the insurance implications of owning an empty or rented property.
More than a third, 36%, were unsure when a vacant property would normally be regarded as unoccupied, while 19% thought it could remain vacant for six months.
Everywhen said a property is usually treated as unoccupied if it is unfurnished and not ready for everyday living, or if it is furnished but has not been lived in for more than 30 consecutive days.
Once a property is let, 20% of respondents were unsure what would typically be covered by standard landlord insurance.
Damage caused by tenants was the most frequently cited concern about becoming a landlord, selected by 46% of respondents. Legal disputes with tenants were the principal concern for 16%, while 15% identified major repair costs.
Concern about tenant damage was particularly high among those surveyed in Chelmsford, at 54%, followed by Glasgow at 51% and Birmingham at 50%.
James Cooper, trading director at Everywhen, said: “Many different circumstances can lead to someone becoming an accidental landlord. Becoming a landlord is a huge responsibility, and it’s easy for unprepared first-time landlords to make mistakes.”
