Renters’ Rights Act 2025: What Landlords Need to Know and How It Could Affect Your Landlord Insurance

Landlord Insurance and the Renter’s Right Act 2025 – Understanding the new rules can help landlords avoid costly mistakes and, just as importantly, ensure their insurance arrangements continue to reflect the risks they face.

Landlord Keys

The rules governing privately rented property in England have changed significantly. Since 1 May 2026, the main tenancy reforms introduced by the Renters’ Rights Act 2025 have been in force, changing how landlords grant tenancies, increase rents, regain possession of their properties and deal with requests from tenants.

For landlords, the changes make good property management, accurate record keeping and appropriate landlord insurance more important than ever.

Understanding the new rules can help landlords avoid costly mistakes and, just as importantly, ensure their insurance arrangements continue to reflect the risks they face.

Fixed-Term Tenancies Have Been Replaced

One of the biggest changes is the move away from traditional fixed-term Assured Shorthold Tenancies (ASTs).

Most existing ASTs have become assured periodic tenancies, while new qualifying tenancies are also arranged on a periodic basis. This means there is generally no fixed tenancy end date; instead, the tenancy continues until the tenant ends it or the landlord obtains possession using an appropriate legal ground.

For landlords accustomed to six or twelve-month agreements, this requires a change in approach. Tenancy documentation should reflect the new rules, and landlords should avoid relying on old templates containing terms that are no longer legally effective.

Section 21 ‘No-Fault’ Evictions Have Ended

Landlords can no longer use Section 21 to regain possession without providing a reason. Instead, possession must be sought using an appropriate Section 8 ground.

These grounds include circumstances such as rent arrears, antisocial behaviour, damage to the property and certain situations where the landlord intends to sell or move into the property. Importantly, some possession grounds have restrictions attached to them; for example, landlords generally cannot use the sale or landlord occupation grounds during the first 12 months of a tenancy.

The potential pitfall is clear: attempting to regain possession using the wrong procedure, incorrect notice or inadequate evidence could create delay and additional expense.

This is also where legal expenses cover within a landlord insurance policy may become increasingly valuable. Depending on the policy, legal expenses insurance can provide access to legal advice and contribute towards specified legal costs. Landlords should check exactly what their policy covers and any conditions that must be satisfied before a claim can be made.

New Rules for Rent Increases

Landlords can no longer rely on contractual rent review clauses to increase rent.

Rent can generally be increased only once a year, using the statutory Section 13 procedure and Form 4A, with at least two months’ notice. A tenant can challenge an increase they believe exceeds the open market rent.

This makes forward financial planning particularly important. Landlords should consider rising maintenance, mortgage and insurance costs when reviewing rent, rather than assuming that rent can simply be adjusted whenever costs increase.

Tenants Have Greater Rights to Request Pets

Tenants now have a statutory right to request permission to keep a pet, and landlords cannot refuse without a reasonable justification.

Requests must be considered individually, with landlords generally having 28 days to respond in writing. Reasons for refusal might include the property being unsuitable for a particular animal or restrictions contained within a superior lease. General concerns that a pet might damage the property would not normally be sufficient on their own.

For landlords, this makes checking landlord buildings and contents insurance particularly important.

Does the policy cover accidental or malicious damage by tenants? How does it deal with damage caused by pets? Are carpets, furniture and landlord-owned contents adequately insured?

Pet damage should not automatically be assumed to be covered. Policy wording, exclusions and limits should be checked carefully.

Compliance Matters More Than Ever

The Renters’ Rights Act has also strengthened enforcement. Landlords can face financial penalties for certain breaches, including using inappropriate fixed-term arrangements or failing to provide required tenancy information. Government guidance confirms that penalties of up to £7,000 can apply to some breaches.

Good administration is therefore increasingly important.

Landlords should retain records of tenancy agreements, deposits, inspections, repairs, correspondence, pet requests, rent notices and any issues involving arrears or antisocial behaviour.

This documentation could also become important when making an insurance claim. Insurers may require evidence supporting a claim, particularly where legal expenses, rent protection, tenant damage or liability is involved.

What Should Landlords Check in Their Insurance?

The new legislation does not automatically mean existing landlord insurance policies are unsuitable, but it is a sensible time to review cover.

Landlords may wish to check:

• Buildings and landlord contents sums insured
• Accidental and malicious damage cover
• Cover relating to pet damage
• Property owners’ liability
• Loss of rent following insured property damage
• Legal expenses and possession proceedings
• Rent guarantee cover, where applicable
• Policy conditions relating to tenant referencing and tenancy documentation
• Restrictions that apply when a property becomes unoccupied

Buildings insurance should also be based on the cost of rebuilding the property, rather than its market value, and policyholders should understand exclusions and limits within their cover.

More Regulation Is Still to Come

The regulatory landscape will continue to develop. The Government’s implementation roadmap provides for the introduction of a Private Rented Sector Database and PRS Landlord Ombudsman, beginning from late 2026. Registration on the database is intended to become mandatory for private-sector landlords.

For landlords, the direction of travel is clear: greater tenant protection is being accompanied by greater responsibility for demonstrating that properties are properly managed and legal obligations are being met.

Is Your Landlord Insurance Still Fit for Purpose?

With tenancy law changing, now is a good opportunity to review both your responsibilities as a landlord and the protection provided by your insurance.

A landlord insurance policy should never be treated simply as another annual renewal. Property values change, rebuilding costs increase, tenants change and new legislation can alter the risks associated with letting property.

Understanding what your policy does and does not cover before a claim happens can prevent an unwelcome surprise when protection is needed most.

This article is intended as general information for landlords in England and does not constitute legal or insurance advice. Regulations and individual circumstances vary. Landlords should obtain appropriate professional advice and refer to their individual insurance policy wording.