"A property refitted with modern materials and energy-efficient systems cannot simply be valued on its pre-upgrade condition. To ensure full protection, rebuild values must evolve alongside compliance"
- Sharon Masters - RebuildCostASSESSMENT
Sharon Masters, technical lead and surveyor at RebuildCostASSESSMENT.com, is urging insurers and landlords to prepare for the financial implications of the Renters' Rights Act.
The legislation begins to take effect on 27 December, with most provisions rolling out through the first half of 2026. Masters explained that the changes will inevitably push up rebuild costs.
“While much of the attention has been focused on tenant protections and the end of ‘no-fault’ evictions,” said Masters, “This new law could also reshape the financial landscape for landlords and insurers, particularly when it comes to rebuild costs.”
A key element of the reform is the extension of the Decent Homes Standard (DHS) to private rentals. Previously applied only to social housing, the DHS now sets clear benchmarks for safety, repair, warmth and energy efficiency in private sector properties. Landlords will be required to ensure that homes are free from serious hazards and maintained in good repair, prompting significant investment in property improvements.
Upgrades such as damp-proofing, modernised electrics, enhanced ventilation and improved insulation will bring properties in line with the new legal standards. However, these works will also increase reinstatement values—the cost of rebuilding properties after a total loss.
Rebuild values must evolve alongside compliance
“Each improvement made to meet the new standards increases the cost of a rebuild to that same standard,” explained Masters. “A property refitted with modern materials and energy-efficient systems cannot simply be valued on its pre-upgrade condition. To ensure full protection, rebuild values must evolve alongside compliance.”
Regular rebuild cost assessments will therefore become critical to maintaining accurate cover.
“A property upgraded today must be insured for what it would cost to rebuild tomorrow,” concluded Masters. “The Act sets a higher bar for safety and quality, which comes with increased costs. Keeping insurance aligned with these new realities will be central to protecting investments and maintaining compliance in the years ahead.”
