Is the UK Landlord Insurance Market Dying? Here’s Why It Could Be—and What You Can Do About It

If you’re in the landlord insurance business, you might be starting to feel the squeeze. Landlords are disappearing, properties are being sold off, and suddenly, there’s a lot less demand for landlord insurance. Sound familiar? Unfortunately, you’re not alone—this is happening across the UK. And if things don’t change soon, the entire landlord insurance market could be in serious trouble.

So, what’s going on, and what can we do about it?

Why Landlords Are Leaving

It all boils down to one thing: tax. In recent years, landlords have been hit with tax changes that are making it harder and harder to turn a profit. Section 24 is the big one—the reduction in mortgage interest relief. Basically, landlords can no longer offset all their mortgage interest against their rental income. Combine that with rising costs, tighter regulations, and a tougher lending environment, and suddenly, being a landlord doesn’t seem so appealing.

What happens when landlords start selling off their properties? You guessed it—fewer rental homes, fewer insurance policies, and less business for providers like you.

Less Landlords, Less Business

The problem is, landlords aren’t just cutting back. Many of them are leaving the market entirely. Some are selling up, while others are trying to find ways to make their businesses more tax-efficient. Either way, the pool of rental properties is shrinking, and that means the demand for landlord insurance is drying up too.

You might have already noticed fewer renewals or a drop in new business. If this trend continues, we’re talking about a potentially huge reduction in the number of landlords—and therefore, a major loss of business for insurers.

What’s Really Driving the Exodus?

At the heart of all this is how landlords are being taxed. The government’s tax policies are hitting landlords hard, and they’re struggling to keep their heads above water. In many cases, landlords are finding that it’s just not worth it anymore. So, they sell up, and we lose them from the market.

There is, however, a way landlords can stay in the game: incorporation. By moving their properties into limited companies, landlords can potentially reduce their tax burden and keep their properties profitable. The catch? HMRC isn’t making it easy. In fact, they’re throwing up roadblocks that are making it harder for landlords to incorporate. And if they can’t find a way to make the numbers work, many will simply continue to leave.

Why This Matters to Insurance Providers

Let’s face it—your business relies on landlords. When they’re doing well, you’re doing well. But if they’re struggling, you’re going to feel the pinch too. Right now, landlords need a way to stay profitable, and incorporation could be the answer. But HMRC’s approach is pushing them out of the market instead.

This means fewer landlords, fewer properties to insure, and ultimately, less business for you. The fewer rental properties there are, the smaller your potential customer base becomes.

So, What Can You Do?

Here’s the thing—there’s still time to turn this around. Organisations like CIOT (Chartered Institute of Taxation) and Property118 are working hard to lobby HMRC for fairer tax treatment for landlords. They’re pushing for clearer guidance and better support for landlords who want to incorporate their property businesses. If they succeed, landlords could have a much easier time staying in the market—and that’s good news for everyone, including insurance providers.

By supporting these campaigns, you’re not just helping landlords—you’re helping to protect your own business. Without landlords, the insurance market will shrink, and we all know what that means for profitability. But with the right support, landlords can stay in the game, and you’ll have more clients to insure.

It’s Time to Act—Before It’s Too Late

If we don’t act now, the UK’s landlord insurance market could see a major downturn. Fewer landlords, fewer properties, and fewer insurance policies. That’s the future we’re looking at unless we do something to help keep landlords in business.

What can you do? Get behind the efforts to change the tax landscape for landlords. Support the campaigns by CIOT and Property118 that are working to protect the future of the rental sector. These organisations are fighting to give landlords a fair shot at staying in business, and you can be a part of that.

Share This Message—and Help Fund the Campaign

We need to get this message out there. Share this article with your networks—insurance industry publishers, landlords, and professional bodies. It’s time to raise awareness about the real reasons behind the landlord exodus and how it’s affecting everyone in the private rented sector, including insurance providers.

Running campaigns like this takes time, money, and resources. Property118 has been leading the charge, but they need your help. Consider supporting the Property118 JustGiving campaign to help fund the fight for fair tax treatment for landlords. Every donation helps keep landlords in the market—and helps keep your business thriving.

To make a contribution, head over to the JustGiving page. Together, we can make a difference.

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