Growing economic uncertainties has seen a rise in the number of letting agents supporting their landlords against rental arrears or income disruption.
According to the latest data from Goodlord and Vouch, a comparison shows that 17% more letting agents are purchasing rent protection insurance compared to this time last year.
Goodlord says that this jump in demand might illustrate how letting agents are diversifying their propositions to best serve landlords amidst extensive economic and legislative challenges.
Despite the Covid19 lockdown in 2020 and 2021, which included extensive eviction bans, this rise in demand has been recorded by the two RentTech platforms over the past year.
Rent protection for landlords
They say the need for rent protection for landlords also highlights the economic uncertainty currently being felt across the private rental sector.
According to Goodlord’s monthly rental index, average tenant income is 12% higher year-on-year across England.
But, with rental costs now 10% higher compared to 2021 and combined with rising utility bills and spiralling food prices, tenants are feeling the financial squeeze.
And this situation is prompting growing numbers of landlords and agents to put insurance measures in place.
Policies help cover the legal costs
Most rental insurance policies help cover the legal costs associated with evictions or the recovery of rent arrears.
The policies also ensure landlords can receive an income whilst their properties that are involved in any disputes are vacant.
‘Demand for rental insurance products’
Oli Sherlock, Goodlord’s director of insurance, said: “There was a big uplift in demand for rental insurance products during the pandemic, but this demand has only intensified over the last year.
“As the economic waters become choppier, agents are quite rightly altering their proposition to support landlords accordingly – loss through non-payment of rent can have major consequences for individuals.”
He added: “Those that have insurance in place can safeguard against this and ensure they have the support needed to legally and constructively navigate any issues that might arise.”