We anticipate a notable increase in legal claims arising from breaches of covenant related to Houses in Multiple Occupation (HMOs). The trend is already emerging, particularly in the social housing sector, and is likely to accelerate if the government proceeds with plans to expand the use of HMOs to accommodate asylum seekers, avoiding the controversy of long term hotel stays. This expansion may conflict with restrictive covenants, especially in residential areas, prompting enforcement action by residential neighbours and landlords. Legal indemnity insurance will assist HMO providers to navigate the cost and risks of claims, albeit we expect to see some restrictions in the cover that may be on offer.