Our latest research shows that the £911.7m market is on the brink of a major realignment. Small landlords are leaving in record numbers, while portfolio and institutional investors are consolidating their hold. Insurers that adapt quickly, particularly around rent guarantee and legal protection, will emerge as clear winners. Those that don’t may find themselves priced out by the very risks they underwrite.
The Paradox at the Heart of the Market
Premiums are climbing 20–25% year-on-year, yet the pool of insured landlords is shrinking fast.
In Q4 2024, 26% of landlords sold at least one property, the highest exit rate ever recorded, while only 8% bought. That 5:1 sell-to-buy ratio is draining rental supply and, with it, insurance volumes.
At the same time, the abolition of Section 21 “no-fault” evictions means possession cases will now take 12–15 months on average, compared with 6–8 months previously. For insurers, that’s double the claims duration and double the cost exposure.
A Market Dividing in Two
The sector is splitting along professional lines.
- Small landlords (owning 1–5 properties and representing 82% of the base) are leaving.
- Portfolio and institutional landlords are expanding, now controlling a rising share of the market.
Build-to-Rent investment exceeded £5 billion last year, with another £6 billion forecast for 2025. For insurers, that means fewer policies overall but a shift toward higher-value, better-managed clients.
Products Under Pressure
Insurers have begun adapting. Rent guarantee policies are now stretching from 6 to 15 months of cover to reflect new possession timelines, while legal expenses limits of £100,000 are becoming standard.
A new niche has even emerged: pet damage insurance, prompted by the Act’s requirement for landlords to consider pets. It’s a reminder that regulation doesn’t just change compliance; it changes the risk profile of what’s insured.
But not every exposure can be insured. The new Rent Repayment Orders, civil penalties, and Ombudsman awards, potentially costing landlords £20,000–£90,000 per property, all sit firmly outside policy cover.
The Claims Challenge Ahead
As every eviction now funnels through Section 8 proceedings, claims are about to surge.
- Rent guarantee claim durations are rising 75–100%.
- Legal expenses volumes could climb 150–200%.
- Property damage during disputed tenancies will become more common.
For insurers, it’s no longer about “if” costs rise; it’s about how fast they can reprice to stay ahead.
What This Means for the Industry
Insurers
Repricing rent guarantee products is unavoidable. Expect 30–40% premium uplifts versus 2023 levels. The opportunity lies in focusing on professional and Build-to-Rent clients, lower frequency, higher sophistication, and greater willingness to pay for robust protection.
Brokers & MGAs
The shift from transactional to advisory is where value will be created. Landlords need guidance, not just quotes, particularly on compliance and product choice. Those who can simplify complexity and integrate technology will build loyalty as others lose relevance.
Landlords
For small, leveraged landlords, the numbers may no longer stack up. For professional and institutional players, however, the door is open. The next five years will reward those who treat insurance as part of strategic risk management, not as an afterthought.
The Road to 2028
Our modelling suggests three possible futures:
- Pessimistic: Market contracts 10–15%, down to £775–820 m GWP.
- Base: Flat policy count but higher premiums, stabilising around £946 m.
- Optimistic: Market holds near £1 bn as professionalisation offsets exits.
Whichever path unfolds, one truth stands out: this is structural change, not a cycle.
The next 24 months, as courts adapt and new systems bed in, will define the winners. Those who use data intelligently, adapt products early, and build trust with professional landlords will emerge stronger.
Final Word
The Renters’ Rights Act will test the resilience of the entire landlord insurance ecosystem. But amid uncertainty comes opportunity.
The £911 million market won’t disappear; it will redistribute across fewer, more sophisticated players serving landlords who expect insight, not guesswork.
At Consumer Intelligence, we’ll be tracking landlord exit rates, claims durations, insurer appetite, and premium trends to help the market see the road ahead clearly.
If you’d like to understand what this means for your business, please contact us. Email: insights@consumerintelligence.com
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