Ceta has launched rent guarantee products for intermediaries as landlords contend with increasing income risk under the Renters’ Rights Act 2025.
The digital personal lines broker introduced four wholesale rent guarantee products aimed at helping intermediaries support landlord clients dealing with longer possession timelines, rising arrears exposure and higher legal costs.
The move comes as market conditions shift sharply following the implementation of the Act, which has already contributed to longer eviction timelines and increased financial pressure across the private rented sector.
Rent guarantee products respond to rising landlord risk
The new rent guarantee products arrive as data points to growing strain on landlords navigating arrears recovery and repossession processes.
Median time to possession now stands at 27 weeks
Landlords face at least 4 months of rental income loss before Section 8 proceedings can begin
Forecasts suggest rent guarantee claim durations will rise by 75-100%
Legal expenses volumes are expected to increase by 150-200%
Ceta said demand for protection has strengthened, with 76% of landlords now more likely to consider cover following the Act. The firm has positioned its offering around longer-duration protection as standard six-month policies no longer align with current timelines.
The broker has introduced four A-rated rent guarantee products with premiums starting from £110. Options include 12-month and 18-month policies, each available with either zero or two months excess.
Underwriting is provided by Addept, with each policy including £50,000 legal expenses cover. Ceta is the first provider to bring 18-month rent guarantee products to market, reflecting what it describes as changing possession conditions.
James O’Hara, commercial director at Ceta (pictured), said: “Having the right protection in place against unpaid rent and tenant disputes is more important than ever.”
Ceta said Standard 6-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. The company added that it aims to ensure rent guarantee products remain accessible and aligned to legislative change impacting landlords and intermediaries.
O’Hara added that the firm is “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.”
Richard Finnan, managing director at Addept, said landlords are experiencing “significant disruption” following the Act. He said the partnership with Ceta supports the launch of rent guarantee products designed to reduce exposure to 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,” he added.
The expansion of rent guarantee products reflects wider market adjustment as landlords and intermediaries reassess risk management strategies in response to legislative change and extended possession timelines.
