Around one fifth of households in England rent. For those tenants forced to stop work due to the coronavirus pandemic, Rishi Sunak’s furlough scheme has provided a financial lifeline.
Figures released at the start of this year, while the second wave was taking hold throughout the UK, showed that 11.2 million jobs had been supported by furlough and that 4 out of 10 employers had used the scheme.
The government has now extended furlough until the end of September 2021, to cover the planned easing of all lockdown restrictions and to ensure there will be no immediate cliff edge. Employers will have to pay increased contributions incrementally from July.
Despite such significant measures being put in place, the problem of growing rent arrears, reduced payments and rent holidays mean that a proportion of landlords have already seen a loss of income and are concerned about the future.
Furlough finishes at the end of September
Many industry experts say it’s inevitable that more tenants will face unemployment once furlough ends, predicting that it will take some time for the private rented sector to recover from Covid’s financial punch and return to pre-pandemic levels. Agents rightly understand that Rent Protection is the best way to protect their business and their landlord’s income but also know from experience that not everyone wants to take this route. When this is the case, Legal Expenses Insurance could be another option to consider. Although usually part of a rent protection package, LEI’s versatility means it can also be purchased as a standalone product and offers a great value-for-money alternative.
Problem tenant? Legal costs can add up fast
Legal Expenses Insurance is designed to help fund unexpected legal costs to evict a tenant that may arise. These disputes can prove stressful, costly and time consuming, so having protection in place means legal expenses are covered - up to the policy limit - for a breach of tenancy. Legal matters can be complex, so knowing you have protection and access to expert advice removes a major worry. It also means you can act quickly - seeking legal advice by phone at your own convenience, without incurring solicitors’ fees.
It’s a flexible and economical product. Some letting agents include LEI free within their services and use this to stand out from competitors, while others offer it as an additional paid-for option.
Lock in future protection
Rent4sure’s Legal Expenses Insurance covers you and your landlords for up to £100,000 of legal expenses and includes access to specialist advice and support through our free Legal Helpline. Our specialist account managers can walk you through all the details and answer any questions. Ring us on 0330 088 3774 or book a call.