Renters' Rights Act

March 2026 - The Renters’ Rights Act comes into effect on 1st May 2026

The Renters’ Rights Act comes into effect on 1^st May 2026, and will result in significant changes for landlords, as a result of the additional measures that have been put in place with the aim of protecting tenants. Rent Guarantee Insurance will be more important for landlords than ever, and we have enhanced our proposition to ensure landlords receive the appropriate protection.
 
What is the Renters Rights Act?
The Act represents the largest shake-up for the private rental market in a generation, and includes the following:

• Abolishment of Section 21 Evictions Notices:
  • Landlords will no longer be able to issue “no-fault” Section 21 eviction notices. All possession claims must now be made under Section 8, which has been extended and requires a valid legal reason.
• Shift to Periodic Assured Tenancies:
  • All existing assured fixed-term tenancies will automatically become periodic assured tenancies once the Act is in force.
• Easer Termination for Tenants:
  • Tenants will be able to end their tenancy with  2 months’ notice.
• Higher Threshold for Rent Arrears Evictions:
  • The mandatory eviction threshold will rise from 2 months of arrears to 3 months, and the notice period for eviction will increase from 2 weeks to 4 weeks.

 
The impact
With Section 21 notices abolished, landlords must rely entirely on Section 8 Notices to evict a tenant from their property. Section 21 notices also typically allow accelerated proceedings, meaning reliance on Section 8 notices will likely result in more complexion, and a longer period to regain vacant possession of the property. It will also cause further congestion in the court systems where a hearing will be required for all cases, unlike many accelerated Section 21 cases.
 
The increase in rent arrears threshold from 2 months to 3, and the additional notice period to tenants within the Section 8 notice to 4 weeks, extends the period of rent arrears for the landlord, where is the reason for this eviction.
 
These changes will result in longer eviction timelines, and therefore a greater loss of rental income when compared to today.
 
As a result, demand for Rent Guarantee and Legal Expenses cover is expected to grow significantly as landlords seek financial protection and support navigating the new legal landscape.
 
Our Enhanced Landlord Proposition
We have redesigned our proposition to meet the evolving needs of landlords in a post-Act implementation environment.

• Payment of rent from Day 1 for a period of up to 12 months; landlords will not have to wait for eviction proceedings to start once rent is 3 months in arrears (S8 notice ground 8).
• New tenant mediation service allowing landlords and tenants to avoid unnecessary legal action and gain vacant possession quicker.
• A dedicated Landlord Claims Team with extensive experience and specialist knowledge in handling Legal Expenses & Rent Guarantee claims, achieving market-leading vacant possession times.
• Access to our in-house Legal Advice Helpline providing practical Act specific legal advice to landlords relating to renting their property including advice about rent reviews.
• An enhanced package of insured benefits tailored to the needs of a modern landlord
• Fully underwritten by A- (Excellent) AM Best rated insurer – AmTrust Specialty Limited
• Fully transparent and customer friendly documentation benefiting from the extensive work we have undertaken to review and benchmark its Landlord LEI documentation to improve customer understanding and outcomes.

 
Supporting our partners
We go beyond product delivery. Through our partnership, we offer distribution consultancy to help you position, promote and distribute theses products effectively. This leads to a stronger conversion rates, improved customer retention and sustainable growth in sales volume.
 
The Outcome
Our proposition is designed to help the market adapt to the impact of the Act with confidence. Our enhanced proposition allows our partners to deliver stronger protection to landlords, backed by proven claims expertise. The result is a resilient product offering fit for purpose, improved customer outcomes and long-term, sustainable growth for our partners.