A specialist policy built specifically for local authority
–introduced tenants
Most rent guarantee products in the UK are built for private tenants and contain strict referencing conditions that often lead to declined claims. This product is different. It has been specifically written around the real processes, real risks, and real protections that exist within local authority placements.
Policy Is Designed to Pay Out — Not Designed to Avoid Paying
Unlike typical rent guarantee products which rely on loopholes to decline claims, this policy:
- Built on the actual risk profile of social housing tenants
- Uses local authority checks instead of private referencing
- Accounts for DWP intervention
- Supports tenants through government partnerships
- Maintains predictable arrears patterns
The structure of the policy is built to approve, not reject, legitimate claims.
Local Authorities Already Complete the Core Risk Checks
Unlike private-sector referencing, council placements already include:
- Affordability checks
- Rent arrears history checks
- Right to Rent verification
- ASB / safeguarding audits
- Identity confirmation
Because these checks are already mandatory within local authority procedures, the insurer only requires:
- Two forms of ID (one photographic)
This dramatically reduces claim disputes and simplifies the whole process.
We focus on resolution first — escalation only when genuinely required.
Universal Credit Tenants Are NOT High Risk — The Data Proves It
There is a misconception that tenants on Universal Credit create arrears. Research over the last several years — especially since COVID — shows the opposite:
Almost 70% of rent arrears now come from working tenants, not those on Universal Credit.
The insurer recognises:
- UC tenants are often more stable because payments can convert to direct to landlord
- Many working tenants rely on UC only as a top-up
- The modern economy (AI, redundancies, rising costs) has created instability for working households, not UC-dependent households
This policy does not penalise UC tenants — it supports them.
Arrears Risk Is Extremely Low Because of DWP Intervention Rules
If a tenant reaches two months’ arrears, the Department for Work and Pensions (DWP) is required to:
- Switch payments to the landlord or agent directly
This creates a natural safety net, meaning:
- The likelihood of very large arrears is small
- Claims are more predictable
- Losses are contained early
This is a major reason the insurer is comfortable offering stronger cover than standard market products.
Insurer Can Access Homelessness Prevention & Government Support Funds
The insurer works with specialist partners who can secure:
- Homelessness prevention grants
- Government hardship funds
- Local authority crisis support
This allows:
- Arrears to be reduced
- Tenancies to be stabilised
- Landlords to be protected without delays
Most standard rent guarantee insurers do not have this mechanism at all.
Up to £50,000 Legal Cover per Incident
The policy includes:
- Full eviction proceedings
- Solicitor costs
- Court fees
- Bailiff costs
- Squatter eviction cover
Many insurers only offer £10,000–£25,000 in legal cover.
This product doubles typical limits.
Rent Guaranteed Up to £2,500 per Month for 12 Months
Benefits include:
- Up to 12 monthly payments
- Paid until vacant possession or end of tenancy
- Cover continues through the legal process
- Paid monthly in arrears
This is significantly stronger than many competing products.
Insurer Can Pay a Tenant’s Deposit to Speed Up Vacant Possession
In cases where the tenant wants to leave but cannot afford a new deposit, the insurer may:
- Pay their next deposit
- Accelerate move-out
- Reduce overall legal timelines
This is a rare and highly valuable additional benefit.
Policy Remains Valid Even if Tenants Change Mid-Term
If:
- A council replaces the tenant
- A new social housing referral is made
The policy continues without cancellation or re-issue.
Very few insurers allow this flexibility.
Faster, Cleaner, More Efficient Claims
Because:
- Local authority verification exists
- UC / DWP safety nets are in place
- Government hardship funds can be accessed
Claims are processed more smoothly than standard private-sector rent guarantee products.
Built by Specialists With Almost a Decade of Experience
This policy has been designed by a specialist with eight years of experience working exclusively with:
- Local authority tenant groups
- Homelessness services
- Social housing placements
- Universal Credit case progression
This expertise is embedded into the product structure, risk model, and claim pathways.
Already Approved and Used by Multiple Local Authorities
Local authorities understand the product’s structure and have approved its use in:
- Homelessness prevention pathways
- Temporary accommodation move-on
- Discharge of duty placements
- Supported social housing tenancies
This provides landlords with institutional reassurance.
Ideal for the Modern Housing Market
The policy reflects the reality of today’s environment:
- More working families are on Universal Credit
- Rent levels are unsustainable for many households
- Job markets are unstable
- Local authorities are increasingly involved in preventing homelessness
- Supported tenants often have stronger risk controls than private tenants
The insurer understands this landscape — and has designed the product around it.
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