Pearson Ham has announced that it has introduced a new Landlord Insurance Price Tracking service, revealing wide variations in the premiums landlords pay for property insurance across the UK.
The pricing consultancy’s analysis points to a range of factors influencing premiums, including experience, property portfolio size, tenant type and, most significantly, location. Many of the findings challenge long-held assumptions about what drives insurance pricing.
Premiums vary widely by region
Geographic location remains one of the strongest influences on insurance costs. According to Pearson Ham’s data, annual premiums can start as low as £66 in some lower-risk areas, such as parts of Romford or Birmingham. In contrast, higher-risk postcodes can see premiums exceed £1,100. While the median figure sits close to £300, local factors, including crime levels, flood exposure and rebuild costs, continue to drive major differences.
Experience has limited impact
Although experience is often seen as a key to securing better rates, the data suggests the advantage is limited. More experienced landlords do tend to pay lower premiums, but the savings are relatively modest. For example, first-time landlords face what Pearson Ham describes as a “novice tax” of around £40 extra per year.
Owning more properties doesn’t guarantee big savings
Many insurers promote portfolio policies that allow multiple properties to be insured under one plan, typically offering streamlined administration and cost savings. Pearson Ham’s analysis found that while landlords with four properties do pay slightly less – around £20 less per property annually compared to single-property owners – the impact remains relatively small. Core risk factors such as property location and type remain dominant in pricing calculations.
Tenant profile influences pricing
Who a property is let to also matters. Landlords renting to working professionals tend to receive lower quotes, with average premiums around £215. In contrast, letting to higher-risk groups, such as students, increases premiums to roughly £320. Insurers appear to favour tenant stability, linking it to reduced claims risk.
Letting agents provide a small edge
Using a letting agent can offer a slight benefit. Some insurers offer lower premiums for fully managed properties, possibly reflecting expectations of better maintenance and more reliable tenants. However, this advantage is minor when compared to more influential pricing factors.
New tool aims to improve transparency
“With the landlord insurance market in flux, we’re seeing a lot of misconceptions,” said Stephen Kennedy, director at Pearson Ham. “We want to bring transparency to these pricing dynamics.”
“By continually monitoring these trends, we can help insurers price more fairly and help landlords navigate further flux in the market,” Kennedy added. “Ultimately, we aim to help informed landlords shop around or negotiate better, and enable insurers to refine their offerings, providing benefits to both through better information.”
