In response to the newly proposed Renter’s Reform Bill, which curtails landlords’ capacity to refuse tenants’ pets, three-quarters of landlords intend to raise rents.
Buy-to-let broker specialist, Mortgages for Business, surveyed landlords regarding their reactions to the legislation. They found 17% would keep their business model consistent but increase rents. Meanwhile, 60% plan to acquire insurance to address potential pet damage-a cost that will also result in higher rents.
Regarding deposit sizes, half of the landlords (50%) said they would increase tenants’ deposit to counterbalance potential pet-related damage expenses.
A 2022 study revealed that 85% of landlords and letting agents have faced pet damage to their properties, with 57% unable to reclaim the costs for pet-caused damage.
The impending bill will prevent landlords from ‘unreasonably’ denying tenants’ pet-keeping requests. If a landlord wishes to reject pet accommodation, they must now issue a written objection within 28 days of receiving the tenant’s written request, providing a ‘good reason’ for refusal. Labour’s forthcoming Renters’ Charter also seeks to amend landlords’ rights to refuse pets.
Moreover, recent research highlights that visible pet presence can depreciate a property’s value by nearly 5%. Consequently, property owners could lose an average of £13,911 when selling their property.
Jeni Browne, Director of Mortgages for Business, commented, “Government statistics indicate that only 7% of landlords currently advertise their properties as ‘pet-friendly’. This isn’t an accident. Housing tenants with pets can be costly for landlords as they can cause property damage and decrease a property’s market value. It’s therefore reasonable for landlords to reject tenants with pets as a cost-saving measure. So, an unfortunate unintended consequence of the ill-conceived Renters Reform Bill is that three-quarters of landlords feel compelled to raise rents for all tenants in the event some have pets. Given this scenario, it’s unsurprising that Michael Gove is already re-evaluating over half of it. This legislation will certainly benefit the minority of tenants who are pet-owners, but it doesn’t bode well for a government that should be supporting tenants amidst a cost of living crisis.”
