Rent insurance demand surges ahead of the Renters’ Rights Act

Landlord demand for rent insurance products rose sharply in the final months of 2025 as agents and landlords prepared for the Renters’ Rights Act.

The analysis from lettings platform Goodlord recorded a 41% increase in demand between September and December.

That came after the Act was signed into law on 27 October.

Alarm sounded

The firm’s managing director of insurance, Oli Sherlock, said: “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 added: “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.”

More take out insurance

A survey of 234 letting agents and landlords found 76% said the legislation had increased their likelihood of taking out insurance.

While 11% reported no change in their position, 1% said they were less likely to arrange cover.

The Act’s measures include the abolition of Section 21 ‘no-fault’ evictions and tenants can formally challenge rent rises.

Respondents also highlighted concerns around eviction timelines, rental disputes and tenancy withdrawals.

Rent protection

Rent protection insurance policies typically cover missed or withheld rent, alongside associated legal expenses and property damage costs.

Mr Sherlock said: “The Act is bringing in a lot of change, and the market is recalibrating accordingly.

“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.”

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