Surge in Rent Insurance Uptake as UK Landlords Brace for Renters’ Rights Act

Summary: Demand for rent insurance products among UK landlords and letting agents increased sharply in late 2025 following the enactment of the Renters’ Rights Act. This legislative change, which includes the abolition of Section 21 evictions and new tenant protections, has prompted landlords to seek greater financial safeguards amid market uncertainty.

SEO Focus Keyword: rent insurance UK landlords

SEO Meta Title: Rent insurance UK landlords see demand rise ahead of new law

SEO Meta Description: Rent insurance UK landlords increasingly adopt rent protection following the Renters’ Rights Act, ensuring security against eviction changes and rent disputes.

Significant Rise in Rent Insurance Demand

In the final quarter of 2025, landlord demand for rent insurance products surged by 41%, according to data from lettings platform Goodlord. This increase coincided with the Renters’ Rights Act receiving Royal Assent on 27 October 2025, signalling a major shift in the private rented sector’s regulatory landscape.

Goodlord’s managing director of insurance, Oli Sherlock, highlighted the impact of the legislation’s passage: “The passing of the Bill into law really focused minds across the sector. There had been so many false starts over the years, it took Royal Assent for lots of agents to truly step up their preparations.” He described the surge in rent protection demand as “an absolute explosion” triggered by the final clearance of the Bill, likening it to “a massive alarm” across the market.

Legislative Changes Driving Insurance Uptake

The Renters’ Rights Act introduces several key measures affecting landlords and tenants. Notably, it abolishes Section 21 ‘no-fault’ evictions, removing a previously straightforward route for landlords to regain possession of their properties. Additionally, tenants gain formal rights to challenge rent increases, potentially complicating rent collection and dispute resolution.

A survey conducted among 234 letting agents and landlords found that 76% reported the new legislation increased their likelihood of taking out rent insurance. Only 11% indicated no change, while a minimal 1% said they were less likely to arrange cover. Concerns raised by respondents included eviction timelines, rental disputes, and tenancy withdrawals, reflecting apprehension about navigating the new legal environment.

What Rent Protection Insurance Covers

Rent protection insurance typically covers landlords against missed or withheld rent payments. It also often includes legal expenses related to rent recovery and potential property damage costs. This type of insurance provides a financial safety net amid the uncertainties introduced by the new Act.

Oli Sherlock noted, “The Act is bringing in a lot of change, and the market is recalibrating accordingly. Lots of the major causes of concern, whether that’s around court backlogs, gazundering, or disappearing tenants, may not come to pass in the volumes some predict, but agents and their landlords clearly don’t want to take any chances at a time of such market uncertainty.”

Implications for UK Landlords and Agents

For landlords and letting agents, the Renters’ Rights Act represents a fundamental change in tenancy management and risk exposure. The abolition of Section 21 evictions means landlords must rely more heavily on Section 8 grounds and legal processes to regain possession, which can be lengthier and more complex. This elevates the importance of rent protection insurance as a risk mitigation tool.

Moreover, the ability for tenants to formally challenge rent increases introduces potential delays and disputes in rent adjustments, further underscoring the value of insurance products that cover legal costs and rent arrears. Landlords are advised to review their insurance policies to ensure adequate coverage in light of these legislative changes.

For landlords seeking advice on insurance options, contacting specialist providers such as The Home Insurer may provide valuable guidance tailored to the evolving regulatory environment.

Suggested internal link anchors

• Rent insurance products
• Renters’ Rights Act
• Section 21 eviction abolition
• Rent protection insurance
• Letting agents and landlords
• Rental disputes
• Tenancy withdrawals
• Legal expenses coverage
• Market uncertainty
• Property damage costs

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/