The private rented sector is entering its biggest period of change in decades. With the Renter’s Rights Act coming into force on 1 May 2026, landlords face a transformed regulatory landscape – one that strengthens tenants’ rights, removes Section 21, and shifts all tenancies onto periodic agreements. These reforms are wide ranging and immediate: the government has confirmed that the central provisions will apply to all private rented properties from 1 May.
For mortgage advisers, this moment represents a vital opportunity to support landlords through the transition—helping them protect their income, stay compliant, and maintain confidence in their portfolios. One of the most effective ways to do that is by ensuring landlords have access to robust rent guarantee and legal expenses cover.
What’s Changing on 1 May – and Why It Matters to Landlord Clients
From 1 May, several core changes take effect simultaneously, including:
- Abolition of Section 21 “no-fault” evictions
Landlords will no longer be able to end a tenancy without a statutory reason, shifting all repossession routes onto strengthened Section 8 grounds.
- All tenancies become periodic
Assured Shorthold Tenancies (ASTs) automatically convert to open‑ended periodic agreements, giving tenants greater stability and flexibility.
- Rent increases limited to once per year
Rent can only be increased annually and only through the prescribed Section 13 process.
- Restrictions on advance rent, bidding wars and discrimination
Landlords cannot request more than one month’s rent upfront, must stick to the advertised rent price, and cannot refuse tenants based on children or benefits.
All of these changes mean landlords will operate within tighter frameworks, face longer timelines for gaining possession, and carry increased financial exposure if tenants fall into arrears.
For mortgage advisers, this creates a new advisory imperative: landlords must be equipped to manage income disruption more proactively than ever before.
The Growing Importance of Rent Guarantee Protection
In an environment where:
- Evictions require more specific statutory grounds
- Possession timelines may lengthen
- Rent increases are more strictly controlled
- Tenants have stronger protections
…a single period of arrears can have a much bigger impact on landlord affordability and cash flow—especially for those with mortgages.
This makes Rent Guarantee Insurance not just desirable, but arguably essential as part of a landlord’s risk‑management strategy.
A strong rent guarantee solution should provide:
- Full rent protection, typically up to a specified monthly limit
- Legal expenses cover for eviction and possession proceedings
- Support through arrears recovery processes
- Continuity of income, allowing landlords to maintain mortgage commitments even when tenants cannot pay
Mortgage advisers are uniquely positioned to educate landlords on this shift. Protecting rental income isn’t only about mitigating risk—it also safeguards long‑term portfolio sustainability and maintains mortgage affordability assessments.
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First2Protect’s Standalone Rent Guarantee & Legal Expenses Cover
- No requirement for bundled policies, product doesn’t need to be linked to a building or contents policy
- Streamlined application, making it simple for landlords to get covered
- Flexibility for advisers, enabling you to introduce protection seamlessly during mortgage conversations
- Cover limits from £500 – £3,500 per month with flexibility to cover either just a mortgage payment or the full monthly rent
- Accessible entry point, making the product suitable for both accidental and portfolio landlords
How Mortgage Advisers Can Lead the Conversation
Here’s how you can add value ahead of 1 May:
- Educate landlords early – Highlight the changes and their practical implications – especially around eviction, rent increases, and tenancy length.
- Position protection as part of compliance-readiness – Helping landlords prepare operationally (documents, communication, updated tenancy packs) is important—but protection against arrears is now just as critical.
- Introduce Rent Guarantee proactively – Particularly for landlords with tighter margins, recent arrears issues, or portfolios in higher‑risk areas.
- Create a structured ‘Renter’s Reform Review’ – Many advisers are building check‑ins with landlord clients during 2026. Incorporating rent guarantee into these reviews strengthens your ongoing client value.
5. A New Era Needs New Safeguards
The Renter’s Rights Act aims to create fairness, transparency, and stability in the rental market. While these reforms bring benefits, they also shift significant risk back onto landlords—especially those dependent on timely rent to meet their mortgage commitments.
As a mortgage adviser, your guidance can help landlords navigate this shift confidently.