As the implementation date of the Renters Rights Act in the United Kingdom approaches this May, new anxieties are emerging across the housing market. Concerns over potential legal complexities, delayed rent collection, and changes to eviction procedures have prompted many landlords to seek rental-related insurance as a precautionary measure.
Property technology firm Goodlord reports a 41% rise in demand for rental insurance products on its platform between September and December last year, reflecting a growing desire among landlords to safeguard their income.
A recent survey of 234 landlords and letting agents revealed that 76% of respondents stated the new legislation had increased their likelihood of purchasing insurance. Only 11% reported no change in their stance, while a mere 1% said their interest in insurance had decreased. The remainder were undecided or did not comment.
Survey Summary
| Indicator | Percentage |
|---|---|
| Likelihood of taking insurance increased due to Act | 76% |
| Position unchanged | 11% |
| Interest in insurance decreased | 1% |
| Insurance demand growth (Sep–Dec) | 41% |
Rental protection insurance typically covers landlords against situations where tenants fail to pay rent or deliberately withhold it. It can also provide partial or full coverage for legal costs, solicitors’ fees, and property damage. Experts warn that the new legislation, which strengthens tenant protections and modifies eviction procedures, could extend the duration of dispute resolution, potentially placing pressure on landlords’ cash flow—a risk that insurance can help mitigate.
A Goodlord spokesperson commented, “The Act is bringing significant changes to the housing market, and the sector is adjusting accordingly. While concerns about court backlogs, tenants disappearing without notice, or aggressive rent negotiations may not materialise as expected, landlords and agents are understandably reluctant to take risks during this period of uncertainty.”
Industry analysts note that it is common for risk-management expenses to rise ahead of regulatory changes. In the long term, however, the market’s stability will depend on the practical implementation of the Act, the efficiency of the court system, and the transparency of tenancy agreements. Meanwhile, some landlords view insurance costs as a small price to pay compared with potential unpaid rent or legal fees. With the May deadline approaching, demand for rental insurance is widely expected to increase further.