Demand for rental insurance increases by 41% as the Renters’ Rights Act approaches: Goodlord

This big jump in demand coincided with the Renters’ Rights Bill receiving Royal Assent on 27 October.

In an additional survey of 234 letting agents and landlords carried out by Goodlord in recent weeks, 76% said the law had increased their chances of getting insurance.

Meanwhile, 11% said their position was unchanged. And only 1% said they were less likely to buy insurance as a result of the Renters’ Rights Act.

The law will be fully implemented on May 1 and will bring a range of new rules for the private rental sector.

This includes the abolition of so-called ‘no-fault’ evictions (section 8), meaning landlords who want to evict tenants from properties must undergo a more complicated process to do so (via a section 13 notice).

Tenants will be able to officially appeal rent increases, and agents will no longer be able to request more than one month’s rent in advance, which is only legally due on the first day of the lease.

Tenant protection insurance typically covers agents and their landlords in the event that tenants miss or withhold rental payments, as well as additional expenses such as legal fees and property damage.

Goodlord director Oli Sherlock said: “The introduction of the Bill has really focused the attention of the entire sector. There have been so many false starts over the years that many officers have needed Royal Assent to really step up their preparations.”

“We saw an absolute explosion in demand for tenancy protection once the bill had gone through the final stages; it was as if a major alarm had sounded across the entire market.”

“The law is bringing a lot of change and the market is recalibrating accordingly. Many of the top causes of concern – whether it’s court backlogs, tenant surveillance or disappearances – may not materialize in the volumes some are predicting, but agents and their landlords clearly don’t want to take any chances at a time of such market uncertainty.”