Aviva is to provide on-the-spot quotes, via Fast Trade, to brokers seeking cover for landlords who let their properties to students.
The increase in student population in the UK has helped to drive demand for rented accommodation as research reveals that nearly two million (80%) of students live away from home[1], with the insurer estimating that two thirds of these live in private dwelling houses.
And according to CB Richard Ellis, commercial property and real estate services adviser[2], the student accommodation market is still growing, with demand increasing by 14% in the past five years. In addition, with the average weekly rent being higher in private halls, students might find accommodation in the private residential market more favourable.
Mark Keavney, product development manager for Aviva, said: “Landlords with student tenanted houses are not always easy to obtain cover for due to the type of risk. Aviva is expanding its underwriting appetite within this sub-segment to enable brokers to offer customers our Residential Property Owners product, which provides cover on an all risks basis.
“It is commonplace that students in their first year live in halls of residence, but second and third year undergraduates typically live in shared, rented accommodation.”
The offering is packaged for brokers to target residential property owners with private houses occupied by students, providing landlords manage the let using an Assured Shorthold or Short Assured Tenancy Agreements.
The proposition includes providing cover for accidental and malicious damage and loss of rent, without having to make a referral.
Note:
[1] Universities UK Report and HESA (Higher Education Statistics Agency) 2007/08.
[2] CB Richard Ellis Hamptons International – Student accommodation, 2007.
