Shock Survey - Quarter of young tenants admit to sub-letting

One in eight tenants admit to letting out part or all of their rented property - and that rises to a quarter of younger tenants.

Nearly half of renters who sublet their properties did not disclose this to their landlords and just over three-quarters of respondents did not review their existing lease agreements to determine if sub-letting was permitted before doing so.  

The findings show that 13 per cent renters admit to renting out part of the home they currently live in, ranging from a single room to the entire property. This rises to 25 per cent amongst younger people, aged 18 to 34.

Some 23 per cent eventually discovered their tenants’ subletting arrangements and tenants often face severe consequences including eviction, not having their lease renewed or receiving a negative reference for future rental applications.

Despite the risks almost one in four - 22 per cent - of respondents said they would still consider or are already signed up to Airbnb or similar services in the coming year to rent out part or all of their rented home. 

Nearly half of young people said they would consider (40 per cent) or are already signed up (six per cent) to these types of services. Similarly, half of Londoners would consider this or are already signed up.

The study looked at eight particular cities. Of those Glasgow had the highest proportion of sub-letters (32 per cent) followed by Birmingham (23 per cent), Brighton (20 per cent) and London, Liverpool and Newcastle (17 per cent).

Direct Line’s Sarah Casey says: “With the market having seen an increase in average rents in the last year, it is hardly surprising that a larger number of renters are tempted to offset this expense by sub-letting their property.

“Landlords and tenants need to be aware that sub-letting has serious insurance implications. Subletting is not covered under most landlord insurance policies, so it’s really important that landlords make tenants fully aware of the restrictions on the lease and maintain that communication to help prevent any breaches. 

“Tenants also need to be aware that their contents insurance is very unlikely to cover any theft or damage to personal property in the event of subletting.

“It’s important that landlords perform regular checks on their rental property to ensure that only those listed on the tenancy agreement live in at the address. Should they become aware of any changes, it’s important that they deal with the situation swiftly and notify their insurer to make sure they have the appropriate landlord insurance in place.”

The survey involved 2,000 tenants questioned in May this year.