The forthcoming Renters’ Rights Act 2025 is set to bring significant change to the private rental sector. While the legislation is designed to strengthen tenant protections, it will also create new challenges and risks for landlords—particularly when it comes to regaining possession of their property and recovering unpaid rent.
At WTJ, we are already speaking to landlords who are concerned about how these changes may affect their income, cashflow and ability to manage risk effectively. In this article, we explain the likely impact of the Act and why Legal Expenses & Rent Guarantee Insurance should now be considered an essential safeguard rather than an optional extra.
Although the final detail of the legislation will determine the precise framework, the direction of travel is clear:
The removal or restriction of Section 21-style evictions will mean landlords must rely more heavily on specific statutory grounds for possession. This makes the eviction process more technical and more likely to be challenged.
The court system is already experiencing significant backlogs. With more cases expected to rely on formal possession proceedings, landlords should anticipate:
Longer timescales to secure a possession order
Increased administrative and legal complexity
Extended periods without rental income
Where a tenant stops paying rent, landlords could face many months of lost income before regaining possession.
Landlords must ensure they are fully compliant with all legal and regulatory requirements. Failure to comply can invalidate possession proceedings, leading to further delay and additional legal costs.
Under the new environment, the real risk is not simply whether you can evict a tenant — it is how long it will take.
If possession proceedings take 6–12 months due to court delays, a landlord could potentially face:
Substantial unpaid rent
Ongoing mortgage commitments
Legal advisers’ costs
Property damage or dilapidations
Stress and administrative burden
For many landlords, especially those with mortgages or a small portfolio, this level of financial exposure is significant.
A comprehensive Residential Property Owners Legal Expenses and Rent Protection policy is specifically designed to address these risks.
Based on the policy summary we provide access to, key features can include:
Cover for advisers’ costs to pursue eviction proceedings where a tenant fails to meet their obligations under the tenancy agreement.
This may also include mediation to resolve tenancy breaches before court action becomes necessary.
Cover for up to £2,500 per month, for a maximum of 12 months’ rent owed by a tenant, where the insured event occurs during the period of insurance and you are pursuing possession action.
In a delayed court environment, this cover can be critical in maintaining cashflow while possession proceedings progress.
Cover to pursue a tenant for costs incurred in rectifying damage caused to the insured property.
Cover to defend civil or criminal prosecutions arising from your obligations as a landlord.
Cover to pursue legal action for nuisance, trespass or damage caused by third parties.
A daily rate payable for time taken off work to attend court.
Like all insurance policies, there are terms and conditions. For example:
There is a 90-day qualifying period for Tenant Eviction claims.
Tenant referencing must be properly completed prior to the tenancy commencing.
Claims must have reasonable prospects of success (at least a 51% chance of success).
Landlords must comply with all laws and regulations relating to renting the property.
Claims must be notified promptly (within specified timeframes).
Ensuring your processes are robust and compliant is essential for cover to respond effectively.
At WTJ we help landlords understand these requirements clearly before a problem arises.
The Renters’ Rights Act 2025 shifts the balance of risk. With longer eviction timelines and more complex legal processes, landlords are effectively carrying greater financial exposure than before.
Legal Expenses & Rent Guarantee Insurance provides:
Financial stability during tenant disputes
Protection against legal costs
Income security during prolonged possession proceedings
Peace of mind in an increasingly regulated market
For many landlords, the premium represents a small fraction of the potential financial loss from just one problematic tenancy.
If you are a landlord concerned about how the Renters’ Rights Act 2025 may affect you, now is the time to review your risk management strategy.
Our team at WTJ can:
Review your current insurance arrangements
Explain the benefits and limitations of Legal Expenses & Rent Guarantee cover
Ensure your tenant referencing and compliance processes align with policy requirements
Provide tailored quotations
In an environment where eviction may take longer and legal disputes are more likely, proactive protection is key.
Contact us today to discuss how Legal Expenses & Rent Guarantee Insurance can protect your property, your income and give you peace of mind.
Article by David Woollin, WTJ.
To discuss our Legal Expenses & Rent Guarantee Insurance solutions, please contact us on on 01924 871111 or email insurance@wtj.co.uk or alternatively leave your details below and one of our staff will make contact with you.
