The Intermediary –- May 2026 - Flipbook - Page 20
P RO T E C T I O N
In focus
Essential cover for
landlord clients
R
egulation of the
private rental
sector (PRS) has
fundamentally
changed, and
for brokers and
independent financial advisers (IFAs)
advising landlord clients, that means
your protection conversations need to
evolve, too.
The Renters’ Rights Act 2025 has
reshaped the private rental sector in
ways that directly increase financial
risk for landlords. The abolition of
‘no-fault’ Section 21 evictions, the end
of assured shorthold tenancies (ASTs),
and the introduction of lengthier
possession processes have collectively
made life far less certain for your
landlord clients.
Under the Act, landlords cannot
begin Section 8 proceedings until
a tenant is at least three months in
arrears. Notice periods have also
increased, and the courts, which are
already under considerable strain, are
only expected to face further pressure.
begin, with timelines expected to
extend further still.
A recent survey by the National
Residential Landlords Association
(NRLA) found that 91% of landlords
are concerned about court waiting
times. While, according to Consumer
Intelligence, claim durations are
forecast to rise by 75% to 100%, while
legal expenses volumes are expected
to increase by 150% to 200% in the
coming months.
Rising protection demand
A survey by The Landlords Association
found that 76% of landlords are now
more likely to seek rent guarantee
cover as a direct result of the Act.
Demand is clearly there, but the
question is now whether you can meet
it with the right product.
Not all rent guarantee solutions
are created equal, and traditional
six-month policies quite simply no
longer fit the bill. With possession
timelines routinely extending well
beyond six months, a policy capped at
MARK CHAPPELL
is head of intermediary
at Ceta Insurance
aligned to today’s reality. Whether
you’re advising a single buy-tolet (BTL) client or a portfolio
landlord, the cover needs to reflect
the environment they’re now
operating in.
Four things to look for
When reviewing rent guarantee
products for landlord clients, focus on
these four key areas:
1. The length of rental income
cover: Does it reflect current
possession timelines?
2. The size of the excess: Does it align
with the new minimum arrears
thresholds under Section 8?
3. Legal expenses cover: Is it included,
and is it comprehensive?
4.The quality and efficiency of the GI
partner: Aer all, speed and quality
maer just as much as price
The third point is particularly
important. Legal expenses cover is
no longer optional. As landlords
face more complex court processes
and longer dispute timelines, the
cost of enforcing possession can be
significant. A policy that covers lost
rent but not the legal bale to recover
the property only protects half
the problem.
As regulation rises, so does the need for stronger landlord protection
The median time to possession has
already reached 27 weeks. That means
a landlord dealing with a problem
tenancy today could face a minimum
of four months of lost rental income
before formal proceedings can even
18
The Intermediary | May 2026
that level leaves landlords exposed at
precisely the moment when they need
protection most.
At Ceta, we believe intermediaries
should be looking at 12 to 18-month
cover options, which are far beer
Don’t delay
Talking to your landlord clients about
rent guarantee cover, and specifically
about the quality and scope of that
cover, is not just good practice. It’s now
a critical part of your role as a trusted
adviser and a genuine differentiator in
a competitive market. ●
