Renters’ Rights Act 2025: What landlords should know about rebuild cost
Updated: Sep 24
The Renters’ Rights Act 2025 received Royal Assent on 27 October 2025. Its first phase of reforms for England’s private rented sector took effect on 1 May 2026. Other measures are being introduced in stages, and some changes to housing standards have separate implementation timelines.
While much of the attention has centred on tenant protections and the end of “no-fault” evictions, the law could also reshape the financial landscape for landlords and insurers, particularly when it comes to rebuild costs.
Higher property standards, higher rebuild values
The government plans to extend an updated Decent Homes Standard to private rented homes in England. Current policy sets 2035 as the implementation date. In the meantime, landlords must continue to meet their existing repair and fitness obligations.
Changes to a building’s structure, materials or services may affect its rebuild cost. Maintenance and compliance work do not automatically increase the sum insured. After significant work, reviewing the rebuild assessment can help check whether it still reflects the property.
“Each improvement made to meet the new standard could increase the cost to rebuild to that same standard,” says Sharon Masters (AIIRSM MARLA), Surveyor and Technical Lead at RebuildCostASSESSMENT.com. “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 with compliance.”
We recently produced a report which goes into detail about energy efficiency retrofits, rebuild costs, and underinsurance. Read it here.
Insurance implications: avoiding underinsurance
These changes are yet another risk of underinsurance if rebuild costs are not reviewed. When landlords make structural or safety improvements, their existing sums insured may no longer reflect the true reinstatement value. Should a claim arise, the payout could fall short of the cost to rebuild to current standards.
A rebuild cost assessment can help inform the buildings sum insured, particularly after significant changes to a property. Whether an assessment is needed and how often to review it depend on the property and the circumstances.
The government plans to extend Awaab’s Law, to privately rented homes. Its requirements and implementation date have not yet been confirmed.
Compliance and accountability
The Act’s measures are being introduced in stages. Local authority enforcement powers have been expanded. A national landlord registration service is due to begin rolling out on 15 December 2026, while mandatory landlord membership of the Private Rented Sector Ombudsman is expected in 2028. Certain specified breaches can attract civil penalties of up to £40,000; the penalty depends on the offence.
These changes create a stronger link between compliance and insurability. Insurance policies often require property owners to take “reasonable precautions” to prevent damage – a duty now reinforced in law. Failing to maintain a property to the required standard could therefore jeopardise both legal and insurance standing.
A new baseline for risk management
The Renters’ Rights Act redefines what is considered a safe, insurable home in the private rented sector. For landlords and brokers alike, this demands vigilance and foresight.
Regular rebuild cost assessments will play an essential role in keeping policies up to date with evolving standards. As Sharon Masters says, “A property upgraded today must be insured for what it would cost to rebuild tomorrow.”
The Act sets a higher bar for safety and quality, and that progress comes with increased costs. Keeping insurance aligned with those realities will be central to protecting investments and maintaining compliance in the years ahead.
