With the ever-changing political climate and new legislation trickling through the legal system, many people are left feeling uncertain. The Renters Rights Bill received ‘Royal Assent’, and it will come into force in May 2026, but many landlords are now wondering if their livelihood, or passive source of income, is becoming unstable.
At Lexelle, we offer insurance policies explicitly written for landlords, providing protection when the tenancy goes wrong.
For more information on providing our Landlord Legal Expenses product to your customers, contact us, and we’d be happy to help. For now, let’s go over the basics.
The Renters’ Rights Act – What is it?
The Renters’ Rights Act is a new piece of legislation aimed at reshaping the rental market, with a primary focus on strengthening protections for tenants. While the intention behind the bill is to address housing insecurity and improve conditions for renters, it brings several challenges for landlords.
As a result, landlords must be prepared to adjust their practices to comply with the new laws, and having a comprehensive insurance policy to protect against disputes with tenants can make all the difference.
Implications for Landlords
The Renters Rights Act imposes significant changes on landlords, potentially impacting everything from cash flow to property management practices. Some of the more pressing changes include, but are not limited to:
Restriction on rent increases – Landlords will need to follow a set process if they wish to change rental costs. If these are disputed, any increase will be halted until an independent body decides whether it is fair. Even if it is found that the increase was fair, it will only become payable from the date of that decision, with no back pay due.
Difficulty around evicting tenants – The act will change the rules for evicting tenants. Fair evictions for issues like rent arrears and anti-social behaviour are still allowed, but the process is being revised. This includes increasing the minimum arrears threshold and extending notice periods.
The end of no-fault evictions – One change landlords are worried about is the end of no-fault evictions. Landlords will have to provide a valid reason to ask a tenant to vacate the property. For example, if a landlord evicts a tenant because they need to sell their property and fails to provide notice, then the landlord may face legal ramifications and have to pay pecuniary damages to the tenant.
Increases landlords’ responsibility to maintain a safe property – Specific rules have been introduced for addressing repairs and ensuring living conditions meet minimum standards. This could lead to higher operational costs, especially in older or less well-maintained properties.
There are, of course, many changes that landlords should be aware of. For more information, visit this for a more in-depth look.
What do these changes mean for landlords?
Are these changes as severe as they sound? Dennis Langley, the managing director at Lexelle, talked about how landlords shouldn’t panic. He said:
“Landlords will still be able to evict tenants on the basis of rent arrears and if they breach the terms of the tenancy, for example if they cause damage to the property”.
They will also still be able to get the property back if they need to sell the property or if they need to live in the property. So, in effect, very little has changed in respect of getting the property back for legitimate reasons, and the Lexelle Landlords Legal Expenses insurance cover will continue to help and pursue such cases for landlords.”
While the changes in legislation may sound overwhelming, they also highlight the importance of having comprehensive insurance coverage. As landlords navigate these new requirements, having the right insurance products becomes essential to protect against the financial risks and legal costs that could arise from tenant disputes.
What Can Landlords Do?
For landlords, it’s essential to adapt quickly to the changes as they come in under the Renters’ Rights Act. The first priority should be ensuring that the required registrations and memberships are adhered to, and then make sure all new tenancy agreements are updated to reflect the new laws, particularly in relation to there being no minimum rental periods, and no pre-agreed/determined rent increases.
Regular inspections and prompt maintenance are now more crucial than ever, and Landlords need to ensure that records are kept to show findings and detail when and what repairs have been carried out to their rental property.
Failure to keep records demonstrating they meet suitable standards as a landlord could leave them exposed to costly legal action or tenant complaints.
However, one of the most effective ways for landlords to safeguard their businesses against issues with tenants in light of these changes is through thorough tenant referencing and the strategic use of insurance. With the complexities introduced by the Renters’ Rights Act, the risk of financial losses due to rent arrears or disputes over eviction is likely to increase.
The importance of having insurance
At Lexelle, our goal is to provide insurance brokers with policies that provide quality cover at affordable prices. When it comes to landlords, we have two policy types: Landlord’s Legal Expenses Insurance and Landlord’s Legal Expenses Insurance with Rent Guarantee.
Dennis Langley further explains how landlords can benefit from having cover should things not go to plan with a tenant. He said:
“If, for example, a tenant has caused damage to the property, the landlord will send us details of the damage, along with their referencing documents. We’ll assess whether or not a successful eviction is likely and also look to instruct solicitors to pursue the eviction and recover any losses, along with the cost of the repairs for what the tenant has done.”
In this case, Landlord Legal Expenses insurance should do the job. However, if a tenant stops paying their rent, this is where the extra cover of the rent guarantee policy can be the difference between an inconvenience and a financial disaster. This upgraded policy not only pursues the legal action but also pays the rent arrears whilst the tenant is being evicted.
Policies to protect landlords
Lexelle’s Landlord Expenses Insurance will cover the legal fees for dealing with tenancy breaches and lost income due to defaults by tenants. Insurance policies tailored to the needs of landlords can provide peace of mind and protect from the unpredictable costs that could arise, and complications that could be added to with the imminent introduction of the Renters’ Rights Act.
At Lexelle, we offer insurance policies to brokers that are written specifically with landlords in mind. Not only will the protection put their minds at rest and protect one of their most valuable assets, it can also keep them loyal customers.
For more information on our Landlord Legal Expenses product, contact us at sayhi@lexelle.com or 0114 350 4107.