Renters’ Rights Act 2025 – Implications for Insurance Claims

Background

The Renters’ Rights Act 2025, the first phase coming into force 1^st May 2026, is aiming to satisfy many years of political pressure and campaigning to reform the private rental market in England. 

Since the Housing Act 1988, which was aimed to encourage investment in the private sector, by the introduction of “no fault” evictions, there has been a growing problem with housing insecurity. As early as 2017, campaigners were reporting such “no fault” evictions were a leading cause in the problem of homelessness. 

Along side the issue of evictions, there has been the ever present problem concerning the standard and maintenance of rented accommodation. Whilst the issue has been mired by political differences, the tragic death of two year old Awaab Ishak, bringing about the Social Housing (Regulation) Act 2023, which included legally binding timeframes for social landlords in England to investigate and repair serious hazards.  

Renters’ Rights Act 2025

So the Renters’ Rights Act 2025 is an attempt at major reform to the private rented sector in England. The provisions will be introduced in stages:

27 October 2025

• New local council enforcement and investigatory powers came into effect.

1 May 2026

• Abolition of Section 21 “no fault” evictions and transition of all tenancies to a rolling periodic agreement. 
• Landlords must give their tenants the required notice period for repossession and must be prepared to evidence their reasons in court. 
• The landlord can only get possession on specific proven grounds, such as rent arrears, selling or moving on, but decided by the Court if the tenant does not leave.  
• Rental bidding is outlawed. 
• Rent in advance is restricted to one month. 
• Landlord should not withhold consent to have a pet without good grounds.
• Discriminatory practices against tenants with children or adverts saying no “No DSS” are outlawed. 

Late 2026 onwards

• Introduction of Private Rented Sector database and extension of Awaab’s Law into the private rental market. 

The use of the term “periodic” tends to suggest regular or fixed intervals, much like the 6 or 12 month tenancies we have now, but the opposite is true. Rolling periodic tenancies means the tenancies are indefinite, i.e. no fixed end unless the tenant gives 2 months notice or a notice period pre-agreed by both parties.

From a loss adjusting perspective, the most notable changes relate to landlord obligations and tenant protections, and these will inevitably influence the size and complexity of future claims. To understand why, consider:

Greater scrutiny on the standard of existing accommodation

With stronger enforcement of property standards and faster remediation requirements, there may be less tolerance for prolonged reinstatement works or a will to stay in accommodation that has suffered moderate damage due to an insured event. Determining when a property is genuinely “uninhabitable” and for how long will need careful consideration. 

Greater pressure on repair timelines

Extended alternative accommodation periods may become more challenging due to regulatory expectations requiring prompt action.

Greater risk of underinsurance

If properties are not insured for adequate reinstatement values, particularly where compliance upgrades are needed, the shortfall could extend repair periods and impact AA duration. With the challenges already faced in finding reasonable AA for occupants, claim costs are very likely to rise putting pressure on existing policy limits. 

Greater complexity

With the introduction of the Act, tenancy agreements with an end date will automatically change to a rolling basis. Landlords will revise their conditions and loss adjusters will need to carefully consider the implications of the new arrangements and how they align with policy cover. This will not only impact on arrangements for the existing rented accommodation but also the temporary accommodation the occupant needs during the repairs. 

Potential advantages

On the flipside, could the end of 6 or 12 month tenancies potentially reduce the exposure for insurers, the displaced tenant having the ability to give a notice period when repairs are approaching completion. This will avoid paying rent on temporary accommodation when the original rental property is available for reoccupation. Potentially. 

Notwithstanding, it’s not hard to imagine if a landlord is seeing more volatility in the market, shorter tenancies, more difficulties in regaining possession and increased maintenance costs, we might expect rents are likely to rise to compensate. Time will tell.