Demand for rental insurance has increased ahead of the implementation of the Renters’ Rights Act later this year, analysis from Goodlord has revealed.
According to the analysis, the Renters’ Rights Act, which will be brought into force on May 1, led to a 41 per cent increase in demand for rental insurance products between September and December 2025.
This jump in demand coincided with the renters’ rights bill securing Royal Assent on October 27.
“The passing of the bill into law really focused our minds across the sector,” Goodlord managing director of insurance, Oli Sherlock, said.
“There had been so many false starts over the years, it took Royal Assent for lots of agents to truly step up their preparations.
“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.”
In an additional survey of 234 letting agents and landlords conducted by Goodlord in recent weeks, 76 per cent of respondents said the Act had increased the likelihood of taking out insurance.
Conversely, just 1 per cent said they were less likely to purchase insurance as a result of the Act.
Consequences
Goodlord detailed the potential impact of the Renters’ Rights Act, pointing out that it will abolish “no fault” evictions, meaning landlords looking to evict tenants from properties face a more complicated process.
Tenants will also be able to officially appeal any rent increases, and agents will no longer be able to ask for more than one month’s rent in advance which will not be due until the first day of the tenancy.
The lettings tech platform pointed out this collectively is causing consternation among industry professionals who worry about lengthy court delays around evictions, protracted rental disputes with tenants, and last minute tenancy dropouts.
“The Act is bringing in a lot of change and the market is recalibrating accordingly,” Sherlock added.
“Lots of the major causes of concern — whether that’s around court backlogs, gazumping, 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.”
tom.dunstan@ft.com
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