We’re in a period of significant change for the private rental sector. With new legislation imminent and the wider financial climate presenting ongoing risks, the traditional approaches to protecting your investment are evolving.
At the core of our strategy is one clear objective: to help you navigate these changes and protect your rental income. This is why we are highlighting the importance of Rent Guarantee coverage, which has never been more critical.
Critical Legislative Changes Are Here
The Renters’ Reform Bill has been voted through Parliament and is now awaiting Royal Assent, with the new laws expected to take effect in Spring 2026.
These changes dramatically shift the balance of risk in favour of the tenant, making recovery in cases of rent arrears much slower and more complex.
Key Shifts in Tenancy Law:
- Abolishment of Section 21: The “no-fault” eviction process will be abolished. Landlords will only be able to recover their property under revised, strict grounds (such as wanting to sell or move back in).
- The Return of Secure Tenancies: Tenants will gain the right to stay indefinitely, provided they meet tenancy terms.
- Slower Arrears Recovery: The arrears threshold required to seek mandatory possession will rise from two months to three months’ rent. Notice periods will also extend, significantly delaying the start of legal action.
- Immediate Arrears Risk: Once the tenancy agreement is signed, you are legally bound to allow the tenant to move in, even if the first month’s rent has not yet been paid. This creates a risk of arrears from day one.
- Flexible Leases: Fixed-term tenancies will end, giving tenants the right to leave with only two months’ notice at any time.
These shifts mean that when arrears occur, the process of regaining possession will be longer, more expensive, and more complex. Rent Guarantee is your essential buffer against these drawn-out legal and financial battles.
Even Good Tenants Can Struggle
Beyond legislative changes, the current financial climate underscores the need for protection. Economic pressures mean that even reliable tenants can face sudden hardship, leading to unexpected arrears:
- Financial Fragility: Nearly half (49%) of UK workers live month-to-month with little financial buffer.
- Lack of Savings: A significant percentage of adults (39%) have less than £1,000 in savings, and nearly a quarter (23%) have £200 or less, leaving them highly vulnerable to income shocks.
- Job Market Instability: Unemployment has edged up, and over 169,000 retail jobs were lost this year, highlighting ongoing employment uncertainty.
Rent Guarantee ensures that when a tenant faces a sudden income loss—due to job loss, illness, or rising living costs – your income stream remains secure.
Your Protection Strategy
We have already seen the tangible benefits of this service: 31 Rent Guarantee claims have been successfully processed for our landlords, resulting in £62,674 in rent paid out—providing vital financial security for those relying on that income.
Key Updates & Action Points:
- Portfolio Transfer Deadline: The current opportunity to secure Rent Guarantee for your existing tenancies via a portfolio transfer list is limited. Crucially, new individual policies purchased through the portal require a 60-day non-claim period to apply, whereas portfolio transfers often mean coverage from day one. We strongly urge you to take advantage of this limited window now.
- Competitive Cost: The fixed cost of £125 + IPT (up to £2,000 rent) remains exceptionally competitive, especially when considering the rising legal risks and premiums in the wider market.
- Our Proactive Preparation: You can rest assured that we have been diligently preparing for the new laws by updating our systems, documents, and processes to minimize your risks and handle most of the coming workload for you.
Our dedicated regional teams have delivered outstanding results, with 95% of offices having already secured Rent Guarantee for their landlords, seeing a tangible uplift in profitability that enables them to reinvest in their services.
We look forward to guiding you through the coming months and continuing to protect your investments, ensuring we remain the most trusted agents in the area.
