COULD LEGAL EXPENSES HAVE A ROLE TO PLAY AS THE LANDLORD PRESSURE COOKER REACHES BOILING POINT?

July 2023 - The Renters (Reform) Bill currently making its way through Parliament has the potential to tip the scales in favour of tenants when it comes to rental properties. Though these reforms are long-awaited, and designed to tackle the scourge of problem landlords, elements such as the abolishment of the Section 21 notice undoubtedly risks putting greater pressure on hard-working landlords and letting agents trying to make a living during a tough economic time.

Insurance Age recently published an in-depth examination of the Bill, and the challenging road ahead for landlords, highlighting the increased value of Landlords Legal Expenses Rent Guarantee (LERG) insurance.

“Many more landlords need legal advice, as they are also finding that local authorities are telling tenants not to leave a property where eviction proceedings are taking place, as this will affect them being rehoused, this can mean more delays for landlords.” – Richard Finan, Director of Strategic Development

Other commentators flagged the increased value of Legal Expenses Insurance for landlords and predicted a likely rise in landlords seeking appropriate cover as the cost-of-living crisis bites, but Richard believes that brokers also have a role to play in demonstrating the value of these products to their landlord and letting agent clients.

“My advice for brokers is to talk to their landlord clients and see if they have cover that is appropriate. Some landlords, for example, will only use a lettings agency to find tenants, but this can mean there is more exposure if they are managing repairs and rent collection,”

We’re keen to stress that we believe the Bill is a key piece of legislation for the insurance market, and we need to be helping our customers and broker partners to understand the implications and challenges ahead.

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Read more of Richard’s insights on the Renters (Reform) Bill here.

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