Ceta has launched a new suite of rent guarantee products aimed at supporting landlords facing rising income risk under the Renters’ Rights Act.
The move comes as possession timelines lengthen and rental income uncertainty increases, with the median time to regain possession now reaching 27 weeks and landlords facing at least four months of lost income before proceedings can begin.
Industry forecasts suggest rent guarantee claim durations could rise by up to 100%, while legal expenses volumes may increase by as much as 200% in the coming months.
Demand for protection is also growing, with more than three-quarters of landlords expected to seek cover as regulatory changes reshape the risk profile of the private rented sector.
COURT DELAYS
James O’Hara, Commercial Director at Ceta, says: “Having the right protection in place against unpaid rent and tenant disputes is more important than ever.
“Standard six-month cover is no longer sufficient; cover of 12-18 months is more aligned to the current possession timelines facing landlords, because of the potential for longer arrear thresholds and significant court delays.
“We’re therefore delighted to lead the market by providing intermediaries and their landlord clients with a range of flexible cover options that ensure cover remains accessible and aligned to the real-world impact of these far-reaching legislative changes.”
The new range includes four products offering 12- and 18-month cover options, with and without excess periods, and premiums starting from £110. Each policy also includes £50,000 in legal expenses cover.
The products are underwritten by Addept, marking what the firms say is the first availability of 18-month rent guarantee cover in the market.
MITIGATE RISKS
Richard Finnan, Managing Director at Addept, says: “Private sector landlords are facing significant disruption as a result of The Act. We’re delighted to support Ceta as they bring to market products designed to mitigate the legal risks and protect against rent arrears and repossession costs.
“It’s great to work with partners who, like us, have the expertise to move quickly and help intermediaries respond to the changing risk and regulatory environment of today’s rental market.”
