More agents buy rent protection insurance as arrears worry grows

Data from different firms suggest there’s been an upsurge in the purchase of rent protection insurance by agents.

Firstly Goodlord and Vouch claims that 17 per cent more agents are buying insurance products now compared to this time last year, presumably on the instruction of their landlord clients. 

According to Goodlord’s monthly rental index, average tenant income is 12 per cent higher across England now than was the case 12 months ago. 

But, with rental costs now 10 per cent higher compared to 2021, combined with rising utility bills and spiralling food prices, tenants are feeling the pressure. 

Most rental insurance policies help cover legal costs associated with evictions or the recovery of rent arrears. They also ensure landlords can receive income whilst properties involved in any disputes are vacant. 

A Goodlord spokesperson says: “There was a big uplift in demand for rental insurance products during the pandemic, but this demand has only intensified over the last year. As the economic waters become choppier, agents are quite rightly altering their proposition to support landlords accordingly - loss through non-payment of rent can have major consequences for individuals. Those that have insurance in place can safeguard against this and ensure they have the support needed to legally and constructively navigate any issues that might arise.”

And general insurance platform provider Paymentshield has seen a 57 per cent increase rent protection as an optional extra alongside its landlord’s insurance product.

Louise Pengelly, proposition director at Paymentshield, says: “Given the current cost-of-living crisis, it’s no surprise that more and more people are struggling to pay the rent, which creates a knock-on effect across the entire economy with landlords in turn feeling the fear. 

“Many ‘accidental landlords’, who perhaps inherited a property or were left with an empty property after moving in with a partner, are now relying heavily on that rental income, where once it may have just been seen as a means of topping up their earnings.”