What the abolition of Section 21 will mean for landlord and the rising costs to protect yourself

With the Renters’ Reform Bill expected to become law by summer 2025, landlords face significant changes in the way they can manage their properties and handle tenancies. This impending shift brings serious considerations – especially for landlords without a managing agent – about how to safeguard against new risks and rising costs in the evolving rental landscape.

The reality: longer, costlier eviction processes.

When Section 21 is abolished, landlords will no longer have the streamlined “no-fault” eviction process at their disposal. Instead, bringing a tenancy to an end will likely mean navigating the court system, adding considerable time, effort, and costs to every eviction. Worse yet, in a challenging case, you could find yourself needing to hire costly legal representation, such as a barrister, to successfully navigate the process.

Without some sort of protection landlords could be exposed to thousands of pounds in unforeseen costs and long delays that drain time and resources. For landlords unaccustomed to managing this process independently, this will be an especially daunting prospect.

Our strategy to protect you

In response, we are proactively asking our clients if they would like to opt for our protected rent and legal expenses service to shield you from these risks. The monthly fee for this service is in addition to your normal fee and includes VAT.

This service includes:

• Guaranteed rent: full rent covered for up to 12 months if your tenant stops paying.
• Legal expenses: Up to £100,000 to cover eviction or court action.
• Re-let coverage: 60% of rent for up to three months after eviction, providing time to re-let the property.
• Full administrative support: all processes handled in-house by our team.

This service applies to your property, not individual tenancies, ensuring continuity even when tenants change. This service is also subject to tenancy law.

The service we are offering is NOT INSURANCE but we have arranged a policy so that we can recover the costs from an insurer, we are the policyholder and we are not selling you insurance, only a service. However, we have to abide by the requirements of our insurance cover and can only offer this service to clients who meet the conditions within our policy, we will advise you if we are not able to offer you this service and this will be reviewed each time you have a change of tenant.

It is very important for us and you that legal matters are handled by a leading solicitor firm trusted across the industry and we will be using Dutton Gregory due to their wide knowledge and respected service. While such protection has not been a necessity in the past, the evolving legal landscape makes this essential to safeguard your interests.

The average cost to evict a tenant is now around £2,200 in legal fees alone, excluding unpaid rent and void periods. This policy protects you against these significant costs, providing peace of mind and financial security

Peace of mind through comprehensive coverage

With the end of Section 21, landlords will need robust protections against potentially lengthy and expensive legal battles with tenants. In this new environment we strongly believe that our protected rent and legal expenses service is an essential safeguard. Without this, landlords risk severe financial strain in cases where tenants stop paying rent or refuse to vacate the property.

Questions? Contact us for expert advice

If you’re unsure about whether your cover is suitable for the future or have any concerns about your rental obligations, get in touch.