Industry body pushes back on pet insurance U-turn

An industry body has criticised the Labour government for reversing its position on pets in the Renters’ Rights Bill.

Ahead of the second debate of the report stage for the Renters’ Rights Bill, in Parliament today (Monday, July 7), Propertymark is urging its members to support an amendment allowing landlords to request an additional pet damage deposit.

Previously, the government had backed allowing landlords to require tenants to hold pet insurance to cover any damage to the property, a move Housing Secretary Angela Rayner said would ensure “no one is left unfairly out of pocket.”

However, in a U-turn by the government, landlords will no longer be able to require tenants with pets to have suitable insurance.

Tenant Fees Act is a barrier to renting with pets

Propertymark points out that, under the Tenant Fees Act, despite its intentions, more tenants are paying higher monthly costs. Since 1 June 2019, deposits on new tenancies have been capped at the equivalent of five weeks’ rent where the total annual rent is less than £50,000, or six weeks’ rent where the total annual rent is £50,000 or more.

Before the Tenant Fees Act, landlords often asked for pet deposits of around two weeks’ rent, but since the Act prohibits this, tenants often end up paying more for keeping their pet in the property.

Propertymark reveals landlords face huge costs if a tenant keeps a pet in their property with can cost a landlord £305 for a three-stage flea treatment which will reflect the lifecycle of a flea with one District Council in Essex charging landlords £276.00 for one visit.

Lord Kinnoull’s amendment 51 would seek to introduce a landlord pet damage deposit which would be equivalent to three weeks’ rent.

Timothy Douglas, head of policy and campaigns at Propertymark, urges members to get behind the amendment.

He said: “Without allowing pet deposits, the government risk further undermining their efforts to support tenants to rent with pets. We know that the Tenant Fees Act 2019 is a barrier to renting with pets with one in five landlords who previously allowed pets no longer doing since the passing of the Act.

“Furthermore, 57% of landlords and agents said they were unable to recoup the cost of damage caused by pets. Lord Kinnoull’s amendment for an additional pet damage deposit offers a better opportunity to support renters and protect landlords.”

Important for members to voice their concerns

Propertymark stresses that as the Renters’ Rights Bill approaches its final stages in the House of Lords, it is more important than ever for members to voice their concerns.

The industry body campaigned for an amendment to remove the restriction of Ground 4A to student accommodation of three or more bedrooms only, and this was agreed to.

The amendment removes the HMO restriction and allows students living in self-contained accommodation, such as one- and two-bedroom properties, to be evicted each year.

During the first debate of the Report Stage of the Renters’ Rights Bill, Baroness Scott of Bybrook pointed out that the current restriction on Ground 4A is “unfair,” as many postgraduates and international students live in one- or two-bedroom properties.

She said: “It’s not about throwing out students, but about ensuring landlords can confidently re-let for the next academic year, and students can confidently plan their lives.”

The amendment was approved, and Propertymark says this shows that engaging with the government can make a difference and urges members to continue pushing for further changes.

Mr Douglas said: “As the Renters’ Rights Bill heads towards the final stages in the House of Lords, we urge agents to continue to reach out to their Peers in the House of Lords to strengthen our calls as a collective and push for changes that will make the legislation work in practice.

“We will ensure that we continue to closely follow the latest developments and engage with Peers and officials to guarantee the legislation and guidance are fit for purpose.”