Rising demand for insurance as economic uncertainties grow
Data from Goodlord and Vouch shows a year on year jump in the use of rent protection amongst letting agents.
Comparisons show that 17% more letting agents are purchasing Rent Protection Insurance compared to this time last year (September/October 2021 vs September/October 2022).
Such change points towards how letting agents are further diversifying their propositions to best serve landlords amidst extensive economic and legislative challenges.
Despite the tumultuous conditions of 2020 and 2021, which included extensive eviction bans, a sizeable rise in demand has been recorded by the two RentTech platforms over the last year, reflecting the economic uncertainty currently felt across the sector.
According to Goodlord’s monthly Rental Index, average tenant income is 12% higher year-on-year across England.
But, with rental costs now 10% higher compared to 2021, combined with rising utility bills and spiraling food prices, tenants are feeling the pressure. This is prompting many landlords and agents to put insurance measures in place.
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.
Oli Sherlock, Director of Insurance at Goodlord, comments:
“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 individual landlords.
"Landlords and agents 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.”