Landlords Rush to Insure Before Reform

Landlords across England are reportedly scrambling to secure rental protection insurance ahead of the forthcoming Renters’ Rights Act, amid mounting uncertainty about how the reforms will reshape the private rented sector.

According to data released by the lettings technology firm Goodlord, demand for rental insurance products rose by 41 per cent between September and December, as property owners sought to shield themselves from potential financial risks linked to the new legislation. The Act, expected to come into force in May, introduces significant changes designed to strengthen tenants’ rights and rebalance the relationship between landlords and renters.

A recent survey conducted by Goodlord, involving 234 landlords and letting agents, indicates widespread concern. More than three-quarters (76 per cent) of respondents said the legislation had increased their likelihood of taking out rental protection insurance. A further 11 per cent said their position remained unchanged, while only 1 per cent reported being less inclined to purchase cover as a result of the reforms.

The findings are summarised below:

*Derived from remaining responses not specified in primary data.

Rental Protection Insurance typically provides cover where tenants fall into arrears or withhold rent payments. Policies often extend to associated legal expenses, including eviction proceedings and representation costs, as well as compensation for property damage beyond standard deposits. For many smaller landlords—particularly those with one or two properties—such insurance can offer a financial buffer against protracted disputes or non-payment.

The Renters’ Rights Act is expected to abolish so-called “no-fault” evictions, strengthen tenants’ security of tenure, and impose tighter compliance obligations on landlords. While tenant advocacy groups have welcomed the reforms as overdue, some landlords and agents warn that court backlogs and procedural delays could expose property owners to extended periods without rental income.

A spokesperson for Goodlord commented: “The Act is bringing in a great deal of change, and the market is recalibrating accordingly. Many of the concerns—whether around court backlogs, gazundering, or disappearing tenants—may not materialise at the scale some anticipate. Nevertheless, agents and landlords are understandably reluctant to take risks at a time of heightened market uncertainty.”

Industry analysts suggest that the surge in insurance demand reflects broader unease within the buy-to-let sector. Rising mortgage costs, regulatory pressures, and tax changes have already squeezed margins in recent years. The additional compliance and procedural adjustments required under the new Act appear to have accelerated a shift towards risk mitigation strategies.

Whether this spike in insurance uptake proves temporary or signals a lasting structural change in landlord behaviour remains to be seen. For now, however, the message from the sector is clear: caution is prevailing as reform approaches.