As the scheduled implementation of the United Kingdom’s proposed Renters Rights Act draws near in May, fresh concerns are emerging within the housing sector. The legislation, designed to strengthen tenant protections, reform eviction processes, and adjust tenancy agreements, has prompted a significant proportion of landlords and letting agents to prepare proactively for potential financial risks. A key aspect of this preparation has been a notable increase in demand for rental protection insurance.
Data from property technology firm Goodlord indicates that between September and December last year, enquiries for rental insurance products on their platform rose by 41 per cent. The company attributes this surge to a growing awareness among landlords about the potential implications of the Act, alongside heightened anxiety over financial exposure.
A recent survey of 234 landlords and letting agents sheds further light on the trend. The results reveal that 76 per cent of respondents reported the new legislation has increased their likelihood of taking out insurance. Eleven per cent stated their position remained unchanged, while only 1 per cent indicated a reduced interest in insurance. The remainder were undecided or chose not to comment.
Survey Summary
| Indicator | Percentage |
|---|---|
| Increased likelihood of taking insurance due to the Act | 76% |
| Position unchanged | 11% |
| Reduced interest in insurance | 1% |
| Insurance demand growth (Sept–Dec) | 41% |
Rental protection insurance typically compensates landlords if tenants fail to pay rent. Coverage often extends to deliberate withholding of rent, protracted disputes, or income loss arising from court proceedings. Additional expenses, such as legal fees, court costs, and property damage, may also be partially or fully covered.
Experts suggest that the changes to eviction processes under the new law could lengthen dispute resolution times, placing pressure on landlords’ cash flow. This is particularly pertinent for landlords who purchased properties through mortgage-dependent investments, for whom even a few months of unpaid rent could create significant financial strain. Insurance is increasingly seen as an effective risk-management tool in this context.
A Goodlord spokesperson stated, “The legislation could bring structural changes to the housing market, and the market is adapting accordingly. Court backlogs, tenant absences, or prolonged rent negotiations may not always occur, but during periods of uncertainty, many landlords prefer to take preventive measures.”
Industry analysts note that it is not unusual for risk-management costs to rise ahead of major policy reforms. However, long-term market stability will hinge on effective implementation of the law, court system efficiency, and contractual transparency. With May approaching, demand for rental protection insurance is expected to continue its upward trajectory.