Letting agents and landlords across the UK are rapidly increasing their use of Rent Protection Insurance ahead of the Renters’ Rights Act coming into force on 1 May — and York is no exception.
New data from Goodlord shows a 41% surge in demand for rental insurance products in the months following Royal Assent of the legislation. A survey of agents and landlords found that 76% said the new Act has made them more likely to take out insurance protection.
The changes are significant. The abolition of Section 21 means landlords will no longer be able to regain possession without grounds. Instead, a more structured and evidence-based process will apply. Tenants will also have greater powers to challenge rent increases, and landlords will no longer be able to request multiple months’ rent upfront.
For York landlords, where demand remains strong but court delays are already stretching timelines, this introduces a new layer of financial risk. If a tenant falls into arrears or disputes possession, the potential impact on cashflow could be substantial.
Rent Protection Insurance typically covers missed rent payments, legal costs and, in some cases, damage beyond the deposit. While no one expects the worst, many landlords are understandably choosing to reduce exposure during a period of regulatory change.
At Littlefairs, we’re seeing more conversations around risk management than ever before. Preparation — not panic — is the key to navigating what comes next. Should you wish to discuss how we could protect your investments with a fantastic Legal Expenses & Rent Guarantee insurance policy backed my Aviva, please give our office a call today.
