The Renters’ Rights Act - new exposures and risks – now is the time to prepare

Landlords facing new risks and increased cost from Renters' Rights Act

The Renters’ Rights Act comes into force on 1 May 2026, heralding the most significant reform of the private rental sector in over a decade.

There is still debate about its long-term impact and awareness amongst many landlords has been low. In the run up to the implementation of the Renters’ Rights Act, private rental sector experts continue to highlight cost fears from the abolishment of ‘no-fault evictions’ and the use of Section 8 to evict tenants. Some say landlords could face an average of £3000 for court fees and legal costs. The total cost of eviction could jump significantly when the impact of court delays and backlogs is factored in, leading to extended periods of unpaid rent.

With sector change will come a new and evolving risk and insurance landscape. In the face of such significant change, the need for specialist legal protection and support will be even more important.

Are your landlord clients protected against the increased costs and new risks that the Act will bring?

With less than a month to go, are your landlord clients ready?

Levelling the playing field but increasing the risks

While the Act will improve tenants’ rights it will also drive new exposures and risks for landlords. These are most immediately evident in changes to the eviction and repossession process.

Recent figures from the Ministry of Justice reveal a continued lengthening of the repossession process timescale. In 2025 the median time from claim to repossession increased to over 27 weeks, an extra two weeks compared to 2024. ^[1] 

In addition, research by the High Court Enforcement Officers Association shows the current national average waiting time for an eviction in the County Court once a judge has ruled the tenant should be evicted is six months. The figure in London is eight months. ^[2]

The Act abolishes Section 21 ‘no-fault’ evictions so landlords will use the existing Section 8 notice. This requires landlords to provide a valid notice and prove the grounds for the eviction in court. Interestingly, statistics from the Ministry of Justice for 2025 showed that the processing and enforcement of possession cases brought under Section 8 took an average of over eight months. Despite reassurances from government that the county courts system will have the resources and capacity needed to manage the increased work, many in the sector are not convinced.

Court backlogs and resourcing problems in the bailiff system all compound the situation with landlords facing the potential of significantly larger levels of rent arrears and impacting on areas such as mortgage defaults or repayment of other types of borrowing.

Increasing the rights of tenants to have a pet in the rental property is viewed as important aspect of the Act reflecting the needs of tenants and acknowledging the mental health benefits of pet ownership. In the initial stages of the legislation landlords were given the right to require a pet damage insurance be in place with the tenant paying the landlord’s reasonable costs to cover the risk of pet damage.

This was welcomed by landlords, tenant groups, animal charities, and commentators in the sector as a way of further encouraging landlords to be pet friendly while offering a relevant and cost-effective solution to mitigate the risks. Then at the 11^th hour the government made a U-turn and removed the mandating of insurance. The move now places the burden of pet damage risk squarely on the shoulders of landlords.

What these two elements of the Act also highlighted are gaps in current landlord insurance products.

Insurance relevance and innovation

There are two factors that should be driving the insurance market’s response to the Act. First is the ability of current products to meet the evolving protection needs of landlords.

With lengthier eviction and possession timescales driving higher levels of rent arrears, rent guarantee insurance will be important. The product provides a landlord with protection from the financial loss of unpaid rent and can include cover for the legal costs for evictions and disputes. During COVID product providers faced the challenge of the product remaining relevant when evictions were banned and the courts were closed. In response, insurers broadened cover in other areas and with it increased the cost. Now, as landlords face higher levels of rent arrears, will these existing products provide the basic support and protection landlords will need and will cover be affordable?

Turning to the increased rights for tenants to have pets. What the government overlooked in its change of heart on including mandated pet damage insurance within the Act was the fact that most landlord insurance products currently exclude pet damage. Also, landlord building’s policies, the most common product purchased by landlords, excludes cover for carpets. So where can landlords turn to address the gap in protection?

The second factor to consider, is the insurance market’s appetite or ability to innovate and evolve their products to stay relevant and address the needs of today’s landlords.

In a poll we conducted as part of a recent market briefing for members of the Managing General Agents’ Association (MGAA) on the Act, we asked the audience of MGAs about the level of product innovation they were seeing from capacity providers. Of the 72 respondents to the question, 15% said their provider had not discussed the Act at all and 35% said that while there was awareness of the Act, no discussions had taken place. Half of the respondents said that their capacity providers were assessing the impact of the Act or had make minor tweaks to cover. Of those who said capacity providers where innovating products at some level only 1 respondent said they had seen genuinely new products responding to the Act.

So, landlords are undoubtedly going to face increased risks and there are protection gaps. Yet, with just weeks to go before the legislation starts to be implemented it seems some providers are still assessing the Act’s impact.

Time for action

There is little doubt that the Act will re-shape the rental market at many levels. The relevance and value of the landlord insurance market and its products will be in the spotlight as landlords look at how to navigate the Act’s impact.

Evolution will need to be more than trying to fit customers into existing solutions that could now be considered no longer fit for purpose. Product innovation will be key to protecting landlords and ensure the landlord insurance market remains relevant.

There are innovative solutions emerging and Addept is excited to be at the forefront of addressing gaps in existing rent guarantee insurance and meeting the unmet needs of landlords trying to protect their assets from the risk of pet damage.

Our private rental sector solutions

Rent Protect ‘Essentials’, a low-cost, alternative legal expenses and rent guarantee insurance. Providing cover for unpaid rent and the legal fees associated with the eviction and property repossession.

Key features include:

• £50,000 limit per insured event for repossession and eviction of squatters.

• Up to £2,500 per month to cover rent arrears for a maximum of 12 months.

• Available as an add-on or on a standalone basis.

• Available to letting agents seeking to reinsure a rental warranty provided under their management service.

• 24-hour Legal Helpline for any residential landlord legal matter.

We can also provide access to a dedicated HMO and Social Housing landlord solution and are developing solutions for commercial and portfolio landlords.

Not for Lions, a dedicated landlord property pet damage insurance, addressing the protection gap that exists in current landlord insurances. Offering an additional layer of protection specifically for pet damage, at an affordable cost to tenants.

Key features include:

• Pet damage to carpets and landlord’s content covered as standard.

• Cover up to £1000 specifically for scratching, plucking, chewing, and fouling. Up to £5000 cover for other types of damage caused by pets.

• Ringfencing of the Tenant’s Deposit.

• Tenant Deposit Adjudication Integration.

• Available on an embedded, add-on or standalone basis.

Rental Fraud Defence, out specialist landlord legal solution provide protection to your landlord customers against the impact of title fraud or illegal sub-letting.

Key features include:

Up to £25,000 in legal costs to:

• Cover reinstatement of a property’s title, boundary, or rights of way,

• Regain lawful possession of a property if it is let or sold.

• Deal with organisations letting or selling a property or providing credit, goods or services including those associated with County Court Judgements.

• Apply to the Land Registry for the reinstatement of title or restrictions under the Land Registration Act 2002 or to be placed on the CIFAS Protective Register.

• Liaise with mortgage and loan providers and credit agencies,

• Available on an add-on or embedded basis.

• Option to include Title Guardian 24/7 digital anti-fraud property monitoring.

To find out more about our private rental sectors solutions please contact us at: enquiries@addeptgroup.co.uk