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Life insurance as well as licensing for student property

Date: Mon, 15 Aug 2005

Parents who are planning to buy a home for their children at university are being warned to ensure they meet new regulations and have adequate life insurance cover.

The introduction of rules aimed at landlords of houses could also apply to parents who are keen to help their child find suitable university accommodation as the regulations cover houses, which are occupied by more than three unrelated people.

In addition, if the property is more than three storeys high and has over five tenants then parents will have to apply for a special license.

The legislation is designed to target poor landlords but it could also mean that parents will face yet more paperwork when trying to purchase a second-home and further increase the need to ensure they have sufficient life insurance cover to protect their investment.

"This new regulation is meant to target disreputable landlords of run-down houses, but parents who buy houses for their children could find themselves caught as well," said Business Moneyfacts editor, Nikki Cann.

"Although this shouldn’t put people off investing, it’s important to be aware of all the possible implications before you buy."


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