Proposals for landlords to require tenants to take out pet damage insurance have been scrapped following amendments tabled by the UK Government ahead of the Bill's Report Stage in the House of Lords. Propertymark is urging Peers to support an alternative amendment to allow for a dedicated pet deposit.
Flexible dedicated deposit
In January 2025, Propertymark met with The Earl of Kinnoull, who leads the Crossbench group of Peers, to discuss the need for a dedicated pet deposit that would sit outside the existing cap. His amendment has now been tabled again for Report Stage.
If adopted, it would allow agents and landlords to request a separate pet damage deposit worth up to three weeks’ rent. This would be refundable and subject to standard deposit protection rules but not counted within the cap set by the Tenant Fees Act.
Without allowing pet deposits, the UK Government risk further undermining their efforts to support tenants to rent with pets.
One in five landlords who previously accepted pets no longer do so since the Tenant Fees Act came into force. Meanwhile, 57 % of landlords and agents say they are unable to recover the cost of pet damage.
Insurance out, risk remains
The Bill originally included a clause enabling landlords to insist on pet insurance as a condition of consent. This was intended to support the Bill’s requirement that landlords consider tenants’ requests to keep a pet and not unreasonably refuse them.
However, with the removal of this provision, there is currently no specific mechanism in the legislation to help manage the risk of pets in rented accommodation.
Propertymark has long warned that the cap on tenancy deposits under the Tenant Fees Act 2019 leaves little room to reflect additional risks, such as the higher likelihood of damage when tenants keep pets.
Before the 2019 reforms, landlords often took pet deposits worth around two weeks' rent. Under current rules, this is no longer possible, and many tenants instead face monthly pet rent surcharges that can quickly add up.
In some cases, cleaning and treatment costs following a tenancy can be substantial; for example, a three-stage flea treatment may cost over £300.
What happens next
The House of Lords will continue Report Stage scrutiny on 7 and 15 July. Propertymark wants Peers across all benches to back the amendment and give letting agents and landlords the clarity and tools they need. Members can write to the Lords to ask them to support Amendment 51. Download our Renters’ Rights Bill Toolkit, which contains emails and contact details of the Lord’s Housing Minister, Baroness Taylor and other peers.
via [Propertymark]