- Demand for rental insurance rose 41 per cent between September and December.
- About 76 per cent of agents and landlords say the law makes insurance more likely.
- The Renters’ Rights Act is expected to take effect in May.
Demand for rental insurance UK products has climbed sharply as landlords and letting agents prepare for the Renters’ Rights Act, with new figures pointing to a noticeable shift in how the sector is managing risk.
Data from lettings platform Goodlord shows demand for rent protection insurance rose by 41 per cent between September and December last year, reflecting growing attention on the potential impact of the Renters’ Rights Act changes across the property market.
The increase came after the Renters’ Rights Bill received Royal Assent on October 27, with the legislation expected to come into force in May. A survey of 234 landlords and letting agents found that 76 per cent said the law made them more likely to take out insurance.
Only 11 per cent said their position had not changed, while just 1 per cent reported being less likely to seek cover as a result of the new rules.
Oli Sherlock, managing director of insurance at Goodlord, said the legislation appears to have sharpened focus across the industry, as quoted in a news report, noting that previous delays meant some firms had held off preparations until the law was confirmed.
Concerns around disputes and delays
According to Goodlord, many industry professionals are worried about possible court backlogs linked to evictions, longer disputes with tenants and last-minute tenancy cancellations once the new framework takes effect.
Sherlock suggested that while some concerns may not materialise at the scale feared, agents and landlords seem reluctant to take risks during a period of uncertainty, reportedly said in a news report.
The data points to a broader trend of landlords and agents looking for ways to protect themselves financially as the legislation reshapes rights and responsibilities across the rental sector.
While the full impact of the reforms will only become clearer once the law is implemented, the surge in insurance demand suggests the market is already adjusting to what could be a significant shift in how tenancies are managed.
