Rental insurance has become a top priority for letting agents and landlords who are “racing” to take out policies, according to lettings platform Goodlord.
The imminent introduction of the Renters’ Rights Act in May is “focusing minds across the sector”, the proptech firm says.
Major jump
There was a 41% increase in demand for rental insurance products between September and December last year.
And this major jump in demand coincided with the Renters’ Rights Bill securing Royal Assent on 27 October.
We saw an absolute explosion in rent protection demand as soon as the Bill cleared the final stages.”
Oli Sherlock, Managing Director of Insurance at Goodlord (pictured), says: “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 says.
“We saw an absolute explosion in rent protection demand as soon as the Bill cleared the final stages; it was like a massive alarm had sounded across the market.”
Consternation
In a survey of 234 letting agents and landlords conducted by Goodlord in recent weeks, over three-quarters of all respondents (76%) said the Act had increased their likelihood of taking out insurance.
Only 11% said their position was unchanged, and just 1% said they were less likely to get insurance as a result of the Act.
Goodlord says there is “consternation amongst industry professionals” who worry about lengthy court delays around evictions, protracted rental disputes with tenants, and last minute tenancy drop-outs.
Agents and their landlords clearly don’t want to take any chances at a time of such market uncertainty.”
Sherlock adds: “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.”