Pearson Ham launches landlord insurance tracking service

Pearson Ham, the pricing consultancy, has launched a new Landlord Insurance Price Tracking service that uncovers significant disparities in what landlords pay for property insurance.

The latest analysis shows that factors such as landlord experience, portfolio size, tenant profile and location can lead to widely varying premiums – often clashing with conventional expectations.

The data highlights a striking geographic variation in landlord insurance premiums. Where a property is located remains one of the biggest price drivers. Annual premiums can range from as low as £66 in some low-risk areas (e.g. parts of Romford or Birmingham) to well over £1,100 in higher-risk postcodes. Pearson Ham’s analysis corroborates these extremes – the median may sit around £300, but local factors such as crime rates, rebuild costs and flood risk can swing prices dramatically.

Conventional wisdom suggests experienced landlords and those with large portfolios get better deals.

A landlord with years of experience will enjoy lower premiums on average – but the difference is on the order of tens of pounds, not a dramatic reduction. First-time landlords, by contrast, are effectively paying a “novice tax” of around £40 more in annual premium.

Many insurers advertise portfolio landlord insurance policies that let owners cover two or more properties under a single policy. These often come with discounts.

Pearson Ham found, however, that while owning more properties can lower individual premiums, the effect is modest. Landlords with four properties pay roughly £20 less per property in median annual premium compared to those with just one.

Portfolio policies can reduce costs (particularly on add-ons) and simplify administration, but they won’t override fundamental risk factors such as location and property type. In short, owning more houses isn’t a free pass to very cheap insurance.

Insurers prefer stability. Policies for tenants with steady employment tend to cost less, whereas renting to higher-risk groups can increase premiums. For example, market data indicates that a landlord letting to working professionals might see an average premium of around £215, but if renting to students, it rises to roughly £320.

The analysis also indicates that using a professional letting agent offers a slight advantage. Pearson Ham observed that some insurers give better quotes for properties under full management. The rationale is that professionally managed properties may be better maintained and tenants more thoroughly vetted, reducing the likelihood of costly claims – although this benefit is relatively minor compared to other factors.

Stephen Kennedy, Director at Pearson Ham, believes the Landlord Insurance Tracker comes at a crucial time: “With the landlord insurance market in flux, we’re seeing a lot of misconceptions. 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. 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.”

Pearson Ham’s new service is a comprehensive landlord insurance price index and analysis tool. It aggregates market data and Pearson Ham’s own pricing insights to track how premiums are moving and why. Updated regularly, the tracker covers a range of indicators, from base buildings-cover costs to the impact of extras and unique landlord circumstances. It is designed to support insurers and landlords with up-to-date intelligence on pricing trends in the buy-to-let insurance sector.

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