Private landlords are vulnerable to title fraud and illegal sub-letting, an insurance boss claims.

Richard Finan, managing director of Addept Insurance, says: “The private rented sector is particularly vulnerable to the risk of title fraud, particularly where properties are Buy To Let, empty, mortgage free or are of high value. 

“Illegal sub-letting is also a growing issue for the UK residential property sector where tenants can profit significantly from unauthorised sub-letting.

“Standard landlord buildings policies and traditional landlords’ legal expenses insurance do not provide protection for these kinds of risks.”

His firm has launched a product providing cover for legal costs associated with the illegal transfer of a property ownership or a tenant letting out part or all of a rental property without obtaining the landlord’s explicit consent. 

Under an Assured Shorthand Tenancy agreement a property may be sub-let only with a landlord’s written consent.

If a landlord finds their tenant sub-letting without consent, they are advised to send a formal warning letter. 

This should refer to the tenancy clause forbidding sub-letting without consent, set out the evidence that they are sub-letting without consent, and give them a set period of time to comply – otherwise legal action may follow.