UK landlord insurance statistics 2024

However, it’s estimated that around 14% of landlords do not have specialist landlord cover in place. This means almost 400,000 landlords could be exposed to potentially large expenses further down the line, should they need to pay for repairs to the building or the replacement of items. 

Landlord insurance provides financial protection for homeowners who rent property out to tenants. In short, it helps cover the increased risks associated with letting properties out to those in rented accommodation.  

Our landlord insurance report collates recent UK landlord insurance statistics, alongside our own data, to see how the market is changing. By analysing landlord insurance stats across different variables, we can assess the extent to which various factors could impact the average cost of landlord insurance in 2024.  

Our top eight UK landlord insurance statistics for 2024 

1. In 2024, the median average cost of landlord insurance in the UK is £233.90.  

2. It’s estimated almost 400,000 landlords don’t have landlord insurance.  

3. The median average cost of landlord insurance for studio flats is around £103 a year compared to nearly £550 for blocks of converted flats.   

4. The median average price of landlord insurance for two and three-bedroom properties tends to range between £191 and £242 a year.  

5. Properties built between 1990 and 2000 tend to have the lowest average cost of landlord insurance (£177.41). 

6. The average cost of landlord insurance tends to be lowest in Romford (East London) at £66.36 a year, yet highest on the west Norfolk coast at £1,189.64 a year.   

7. Renting to the employed accounts for nearly three-quarters (74.65%) of quotes and has one of the lowest average costs for landlord insurance (£215.91).  

8. In 2024, the increase in the cost of landlord insurance is around +4%, compared to 2023. (This excludes the additional cost of index linking which is applied to your sums insured)  

Average cost of landlord insurance in the UK 2024 

The median average cost of landlord insurance in the UK in 2024 is £233.90. This is for landlord insurance with no optional extras, and takes into account all property types, locations, and tenant types in the UK. 

Average cost of landlord insurance in the UK by property type 

Based on quote data, a studio flat is the cheapest type of property for landlord insurance. With an average price of £103.54, this is over a quarter (28.9%) less than the next most affordable property type (an individual converted flat).  

Other types of property that are relatively affordable for landlord insurance include: 

• Purpose built individual flats (£142.35) 

• Tyneside flats (£155.13) 

A breakdown of average landlord insurance costs by type of property 

As expected, at the other end of the scale, the most expensive landlord insurance is the purpose built block of flats, where multiple properties are covered. With an average quote of £653.26 per year, this is 518% more expensive than the most affordable option (studio flat).  

On average, landlord insurance is also relatively high for converted blocks of flats and detached housing, with typical quotes ranging from £626.15 to £314.40, respectively. 

In total, the most common type of quote for landlord insurance was for terraced housing. Accounting for more than two in five (41.47%) of quotes, the average cost of landlord insurance for this type of property was £239.41 a year. 

Average cost of UK landlord insurance by number of bedrooms 

Another factor that affects the cost of landlord insurance is property size. Generally, properties with fewer bedrooms tend to generate cheaper landlord insurance quotes.  

According to our quote-based data, one-bedroom properties tend to have the lowest landlord insurance costs (excluding studio flats). On average, this will set you back around £144.69 for the year.  

The most popular property size for landlord insurance quotes is two-bedroom (36.3%), followed closely by three-bedroom properties (34.8%). Despite having twice the number of bedrooms, a two bedroom property will cost 32% more to insure than a one bedroom property. For a three bedroom property the price increases once again, this time by £96.89.  

A breakdown of average landlord insurance costs by house size 

On average, a four-bedroom property costs 38.2% more to insure than a three-bedroom, and around 130% more than a one-bed property.  

Typically, the most expensive property size for landlord insurance is one with 10 bedrooms. With an average quote of £650.58, this is over a third (36%) more than the cost to insure a 9-bedroom property.  

Average cost of landlord insurance in the UK by age of property  

Our very own landlord insurance statistics show that newer properties tend to yield cheaper insurance costs.  

Typically, properties built between 1990-2000 have the lowest average landlord insurance costs. At £177.41 for a typical quote, this is almost £4 a year cheaper than the next most affordable options (properties built after 2000 and those constructed between 1980-1989). 

A breakdown of average landlord insurance costs by year of construction 

According to our quote-based data, properties built between 1900-1920 are the most common property age for landlord insurance quotes.  

The average price of landlord insurance drops significantly for properties built after the Second World War. Those constructed between 1945-1979 cost 25% less on average to insure than a typical property built prior to 1944 and contribute to almost a quarter of total quotes (22.84%).  

Average cost of landlord insurance in the UK by property value  

Our latest landlord insurance statistics show that as a property’s rebuild values increase, so does the relative cost of landlord insurance.  

Almost three-quarters (71.14%) of our landlord insurance quotes are for properties with a rebuild value of between £100,000 and £300,000, generating average prices of £176.13 and £261.85, respectively.  

The average cost of landlord insurance is lowest for properties under £100,000 RV, although this accounts for just over 1% of our total quotes. 

A breakdown of average landlord insurance costs by rebuild value of property 

At the other end of the scale, once the rebuild value of a property exceeds £900,000, then this results in an average landlord insurance cost of around £1,107.  

Typically, the highest average landlord insurance costs can be found on properties between £5-6 million RV (around £4,768.41 per year).   

Average cost of landlord insurance by UK region  

Across the UK, there are significant variations in the average cost of landlord insurance, ranging from as little as £66.36 a year, up to more than £1,189.   

Based on our quote data, the price of landlord insurance in the UK tends to be highest in the south—particularly in London—and less expensive towards the north. However, there are some areas of the capital, such as those in the E13, where the average cost can drop below £70 a year, depending on your personal circumstances and the type of property being insured.  

A breakdown of average landlord insurance costs by UK postcode  

A breakdown of the lowest average landlord insurance costs by UK postcode  

According to our quote-based data, the most affordable part of the country for landlord insurance is located in the postcode area RM11. Property owners in Romford (East London) had an average quote price of £66.36 for their landlord insurance. This was marginally ahead of B7 5 in Birmingham at £68.41 a year.  

Haverfordwest (Wales) was the only other postcode area of the country to experience average landlord insurance costs of less than £70 a year.  

A breakdown of the highest average landlord insurance costs by UK postcode 

According to our quote-based data, the most expensive area of the UK for landlord insurance is in the postcode PE36. Situated on the west coast of Norfolk, the average price of landlord insurance here is just over £1,189 a year.  

This is followed by N4 3 and N6 5 postcodes, which have average landlord insurance costs in excess of £1,151 and £1,125, respectively.  

Average cost of landlord insurance in the UK by tenant type 

According to our quote-based landlord insurance statistics, the lowest average cost of landlord insurance is for those renting to the employed (£215.91), followed by the retired (£216.57) and unemployed (£218.52), although this is for a very small percentage of quotes.   

Typically, properties with residents on housing benefits face average landlord insurance costs of £234.66 a year, compared to £248.40 for those who are self-employed. This figure was close to a fifth (14%) more per year than tenants who are retired.  

A breakdown of average landlord insurance costs by type of occupant 

According to our data, students are the second most popular tenant type (8.26%) after the employed (74.65%). However, the average cost of landlord insurance for renting to students is just over £100 a year more than employed tenants.   

In addition, an unoccupied property has a typical cost of £411 per year. This makes them 90% more expensive for landlord insurance compared to tenants who are retired, and the most expensive of all categories. 

Which optional extras have the biggest impact on landlord insurance costs in the UK?    

The overall cost of landlord insurance will vary depending on which optional extras you choose to include. For example, landlord legal expenses insurance (with up to £50,000 worth of cover) could set you back an extra £40 a year.  

Similarly, rent guarantee insurance will set you back £160 a year, when purchased alongside landlord insurance, with the cost of adding landlord home emergency cover standing at £150.  At the other end of the scale, landlord contents insurance as an add-on could range between £87 and £261 a year, depending on how much landlord cover you require. 

A breakdown of average landlords contents insurance costs 

In addition to optional extras on their landlord insurance policy, those renting to tenants may also want to consider taking out landlord contents insurance. This will help protect personal items and possessions in the property, particularly if renting out one which is part or fully-furnished.  

As expected, the median average cost of landlord contents insurance depends largely on the collective value of your items and how much subsequent cover you require. On average, if you have contents worth up to £15,000 in total, then you can expect to pay around £88 a year for landlord contents insurance. However, for double this amount of cover, the average cost rises to just over £179. 
 
If your contents are collectively worth more than £30,000, then expect to pay in the region of £282 a year, on average.  

Factors that affect landlord insurance costs in the UK 

There are many factors that can affect the cost of landlord insurance in the UK. Most of these relate to property characteristics, including:  

• Rebuild costs/estimated value  

• Year it was built  

• Whether it is occupied or unoccupied  

• Types of construction materials used  

• Type of occupancy (i.e. commercial only, residential only, or mixed-use buildings) 

• Type of building (i.e. purpose-built, listed property) 

• Any building/renovation works in progress 

• Number of properties being covered by the policy 

• Location   

Landlord insurance costs can also be affected by the type of tenants living in the property (i.e whether they are employed, students, part of a house share, housing association, or local authority).  

In addition, the type of landlord insurance you select, along with any policy add-ons, can also influence the cost of landlord insurance.  

This may include: 

• Accidental damage 

• Cover for fixtures and fittings 

• Tenant default 

• Rent protection 

• Home emergency cover

What external factors affect the average cost of landlord insurance in the UK? 

Recent landlord insurance statistics indicate that annual growth in landlord insurance costs is expected to continue into 2024. For example, our data shows a 4% increase in single property policies compared to 2023.  

This is driven by multiple factors, including claims inflation, operating ratios, and direct inflationary costs, which influenced the average price of landlord insurance for consumers up and down the UK.  

Inflation 

While inflation fell to its lowest point in three years back down to the Bank of England’s target of 2% in June 2024, the effect of high inflation and the cost-of-living crisis are still being felt after the record high of 11.1% seen in October 2022.  

Cost of materials and labour 

Statistics from the Building Cost Information Service’s (BCIS), also known as BCI, shows that the cost of materials fell by 1% by the end of 2023 compared to 2022. However, this isn’t expected to continue and building costs are predicted to increase by 15% over the next five years. 

Labour costs and shortages 

Although new construction output declined in 2023, labour costs have steadily increased. Driven by increases to the National Living Wage, unskilled and semi-skilled workers’ wages increased by 4.7% between 2022 and 2023. Labour costs are expected to continue to rise, with a predicted increase of 18% over the next five years.    

Skills shortages continue to be a persistent problem, with declining construction outputs decreasing wages for higher skilled workers.  

New construction output  

Statistics for new construction orders show a decline of 30% in 2023 compared to 2022. However, there is predicted growth of 21% over the next five years.   

Environmental change 

Climate change is resulting in more weather-related claims on insurance. According to the Association of British Insurers (ABI), insurers paid out £4.86 billion to homeowners and businesses in 2023 for weather-related claims. This represents a 10% increase on 2022, and the highest figure on record.   

Furthermore, burst pipes accounted for £153m of claims pay outs, mainly due to the frigid temperatures experienced in early 2023.  

Property damage caused by environmental disasters, combined with inflationary pressures from rising cost of materials and labour, leads to claims inflation. This naturally increases the cost of repair for insurance companies, leading to higher premiums for the consumer.  

Tourism 

The latest inbound tourism forecasts from Visit Britain suggest that 38.5 million people could visit the UK in 2024 (a 5% increase on 2023, and 14% increase on 2019), spending around £32.5 billion. This may further increase the demand for self-catering accommodation, as seen by the rapid rise of Airbnb in the last decade.  

Landlords in this industry will need to ensure they have an adequate short term landlord insurance policy in place, such as Airbnb insurance, or serviced accommodation insurance if they are providing hotel-like services (such as housekeeping) alongside amenities for cooking and washing.  

Survey reveals landlord perceptions of their tenants and the struggles of being a property owner 

To find out how landlords are feeling about the market and their tenants, in June 2024 we surveyed 1,046 landlords from across the UK to understand what struggles they face and whether they are optimistic for the future. 

How are landlords expecting their property portfolio to change in the next year? 

Our survey data shows that over three quarters (76%) of landlords are content with their property portfolios and wish to keep them the same size.  

The next most popular response was from landlords who were planning to sell some properties, with over 7% indicating that they’d like to reduce their portfolio by under a half.  

Possibly due to the financial uncertainty around the cost of living of crisis, 5.6% of landlords said they planned to sell their entire property portfolio, this figure has almost doubled since our 2023 survey, when it stood at 2.9%. 

What problems do landlords struggle with the most? 

The most common problem that landlords struggle with are legislation changes with over a third (36.2%) saying that this is the biggest problem they face. This is in stark contrast to our 2023 survey, when only 6.9% of landlords surveyed cited this as their biggest problem. 

Not far behind is maintenance requests, an issue which 24.7% of landlords claim they struggle with the most.  

The problem which landlords struggled the least with was conflicts with tenants. Only 2.4% claimed that this was the biggest struggle that they faced. This means that a landlord is 15 times as likely to have struggled with legislation changes than they are with conflict with their tenants. 

While we didn’t survey this in 2023, tellingly, in our 2024 survey 12% of landlords cited tenants not paying rent as their biggest problem. 

How well do landlords get on with their tenants? 

Our survey data shows that most landlords either have a ‘very positive’ or ‘somewhat positive’ relationship with their tenants, indicating that the majority of landlords have a good relationship with their tenants.  

A breakdown of how landlords feel about their tenants 

In contrast, under 7% of landlords would say that they have a ‘somewhat negative’ or ‘negative’ relationship with their tenants. 

How much easier was it finding tenants in 2023 compared to 2022? 

The most common answer to this question is that things have stayed ‘about the same’, with almost two-thirds (65%) feeling this way. 

A breakdown of whether landlords have found finding tenants in 2024 easier than in 2023 

Over 13% felt that finding a tenant had got much easier and only 8.2% felt that things had become more difficult, reflective of the competition in the rental market.  

What are the best types of tenants? 

Almost two in five landlords (39%) felt that young professionals were the best tenants to have. The next most popular tenant type was families (24.8%). 

Single tenants were also a popular choice of tenant, with 15% believing this was the best tenant type to have in their property. Surprisingly, only 4.9% of landlords selected students as their preferred tenant type. 

This table shows the weighted results, accounting for the rankings of all tenant types from 1 to 8. By assigning weights to each rank (with the highest weight given to the first choice and decreasing weights for lower ranks), we get a slightly different view of landlord’s tenant preferences. While young professionals remain the favoured choice, single tenants is the second choice, with families becoming the third.  

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