Demand for rent protection insurance has surged by 41 percent as landlords and letting agents prepare for the Renters’ Rights Act to come into force in May, according to new data from Goodlord.
The lettings technology platform recorded the sharp rise between September and December 2025, a period that coincided with the Renters’ Rights Bill receiving Royal Assent on 27 October. A separate survey of 234 letting agents and landlords found that 76 percent said the legislation had increased their likelihood of taking out insurance.
Royal Assent triggered scramble
Oli Sherlock, Managing Director of Insurance at Goodlord, said the passing of the Bill into law concentrated attention 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 said. “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.”
Of those surveyed, just 11 percent said their position on insurance was unchanged, while only one percent reported being less likely to put cover in place following the Act.
Concerns over court delays and tenant disputes
The Renters’ Rights Act will abolish Section 21 no-fault evictions from 1 May, meaning landlords seeking possession must rely on Section 8 grounds. This shift is driving concern about court backlogs that already see wait times reach 16 weeks in London. Tenants will also gain the right to formally appeal rent increases, adding another potential source of dispute.
The Act will additionally ban agents from requesting more than one month’s rent in advance, with payments not legally due until the first day of the tenancy. Industry professionals worry this could increase the risk of last-minute dropouts from prospective tenants.
Rent protection insurance typically covers landlords and agents when tenants miss or withhold payments, and can extend to legal costs and property damage.
Market recalibrating
“The Act is bringing in a lot of change and the market is recalibrating accordingly,” Sherlock said. “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.”
The findings add to evidence that landlords are taking proactive steps ahead of the regulatory shift. Bristol Council recently launched a consultation on penalty levels under the new Act, signalling that enforcement preparations are also underway at local authority level.
Goodlord provides lettings technology and insurance services to over 3,500 letting agent brands across the UK, processing tens of thousands of tenancies per month.
Editor’s view
Insurance is rarely headline news, but this data captures genuine market anxiety. With Section 21 disappearing and court delays showing no sign of easing, covering the downside has become standard practice rather than optional caution.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 24 February 2026
Sources: Goodlord
Related reading: Eviction court wait times: 16 weeks in London, 6 in Blackpool
