Insurance costs significantly higher for period properties across UK regions

Insurance costs significantly higher for period properties across UK regions

A recent analysis of buildings insurance quotes reveals that period homes consistently incur higher insurance premiums than modern properties, with some regions experiencing nearly double the costs for older properties.

The new data from Uswitch highlights that landlords and letting agents managing period properties face notably increased insurance expenses compared to those with post-1980 homes. This disparity varies by region but remains substantial nationwide, impacting portfolio budgeting and risk assessment.

According to the analysis, period properties—those built before 1919—are more expensive to insure in every UK region compared to modern homes constructed after 1980. For example, in the South West, the median annual insurance premium for a pre-1919 home stands at £242.68, nearly 80% higher than the £134.84 median for a modern property. Other regions such as Scotland, London, the South East, and the East of England also show premiums over 50% higher for period homes, while the North West has the smallest gap at 31%.

Detailed insurance cost differences and property features driving premiums

Nationally, the study found that Tudor or Stuart-era homes cost on average 3.3 times more to insure than modern properties, with median premiums of £503.75 compared to £151.50. Victorian properties, the most common type of period home in the UK, have a median annual insurance cost of £224.36, which is nearly £73 more than modern homes.

Age alone does not explain the full increase in insurance costs. The analysis points to specific features common in older properties that also raise premiums. For instance, homes heated by oil—which is prevalent in older properties lacking mains gas connections—face median premiums of £287.04. Additionally, properties located within 200 metres of water, reflecting higher flood risk, have median insurance costs of £269.50.

The research also mapped the concentration of period housing across the UK, finding Wales and London tied with the highest proportion of pre-1919 homes, where nearly 30% of properties fall into this category. This concentration has implications for regional insurance markets and risk management strategies for landlords operating in these areas.

Context of insurance challenges for landlords of period properties

Landlords with period properties have long faced higher insurance premiums due to factors such as older construction methods, use of traditional materials, and increased maintenance risks. These elements contribute to insurers perceiving higher risk of damage and costly repairs. Furthermore, older homes may lack modern safety features and energy efficiency, which can affect both insurance costs and regulatory compliance.

The regional variation in premiums reflects differing risk profiles, including flood risk and local building stock characteristics. For example, the South West’s high uplift in premiums aligns with its significant number of older properties and exposure to coastal flooding risks. Conversely, the North West’s smaller premium gap suggests a different risk environment or insurer pricing strategies.

Insurance premiums are a critical consideration for landlords managing period homes, as they directly affect operating costs and profitability. The higher premiums may also influence decisions on rent setting and property improvements, especially where landlords seek to mitigate risks through upgrades or insurance shopping.

Practical implications for landlords and letting agents

For landlords, the findings underline the importance of factoring in higher insurance costs when acquiring or managing period properties. Budgeting for premiums that can be 50% or more above those for modern homes is essential to maintain financial viability. Letting agents advising landlords should ensure insurance costs are clearly understood and incorporated into rental pricing strategies.

Landlords should also consider the specific features driving premiums, such as oil heating and flood risk, and explore whether targeted property improvements could reduce insurance costs. For example, installing modern heating systems or flood defenses may improve risk profiles and lower premiums over time.

Additionally, landlords operating in regions with high concentrations of period homes should be aware of local insurance market conditions and seek competitive quotes. Engaging with insurance brokers specialising in older properties may yield better terms and coverage suited to the unique risks of period homes.

Outstanding uncertainties and considerations for the future

While the analysis provides clear evidence of premium disparities, the underlying factors influencing insurer pricing models remain complex and may evolve. Changes in climate risk, building regulations, and insurance market competition could alter premiums for period properties in coming years.

Landlords should monitor regulatory developments related to property safety and energy efficiency, as these can affect both insurance requirements and costs. For example, new rules on fire safety or mandatory upgrades could increase upfront costs but potentially reduce insurance risk.

It is also uncertain how emerging insurance products or government-backed schemes might support landlords of older properties. Keeping abreast of such initiatives will be important for managing long-term risks and costs.

What landlords should consider now

• Review current insurance policies and premiums for period properties in your portfolio to understand cost drivers.
• Assess property features such as heating systems and flood risk that may influence insurance costs and consider improvements where feasible.
• Shop around for insurance quotes, including specialist brokers familiar with period homes, to secure competitive premiums.
• Stay informed about regulatory changes affecting property safety and compliance that could impact insurance and maintenance obligations.
• Factor higher insurance costs into rental pricing and investment decisions to maintain sustainable returns.

Supporting landlords with insurance and compliance management

The Landlord Association (TLA) offers membership resources that can assist landlords and letting agents in managing insurance and compliance challenges for period properties. Through TLA membership, landlords gain access to practical guidance on reviewing property records, understanding insurance implications, and monitoring regulatory developments that affect older homes.

TLA’s new property management and compliance platform, ORBIT, currently in BETA testing, is designed to help landlords organise property documentation and records, including insurance policies and safety certificates. ORBIT aims to support landlords in maintaining evidence of compliance and managing key actions related to property maintenance and risk mitigation.

Exploring TLA membership and ORBIT BETA access can provide landlords with tools and information to better handle the complexities of insuring and managing period properties in today’s regulatory environment.

Landlords should continue to verify specific insurance terms and seek professional advice as needed, while keeping an eye on evolving market and regulatory conditions.

Sources: Landlord Today