In response to the Renter’s Reform Bill, which aims to limit landlords’ ability to refuse tenants’ pets, a survey conducted by Mortgages for Business has revealed that three-quarters of landlords are planning to raise rents. The bill has generated concerns among landlords, who foresee increased costs associated with potential pet damage and a decrease in property value.

According to the survey, 17% of landlords stated that they would maintain their current business model but raise rents. Additionally, 60% of landlords plan to acquire insurance to cover potential pet-related damage, which will result in higher rents. In order to offset the expenses associated with pet damage, 50% of landlords intend to increase tenants’ deposits.

The survey findings are supported by a study conducted in 2022, which showed that 85% of landlords and letting agents have experienced pet-related property damage, with 57% unable to recover the costs incurred.

The Renter’s Reform Bill, set to be implemented soon, will restrict landlords from unreasonably refusing tenants’ requests to keep pets. Landlords will now be required to provide a written objection within 28 days of receiving a tenant’s request, along with a valid “good reason” for refusal. The upcoming Renters’ Charter, proposed by the Labour Party, also aims to amend landlords’ rights to reject pets.

Furthermore, recent research has indicated that the presence of pets can devalue a property by nearly 5%. As a result, property owners could face an average loss of £13,911 when selling their properties.

Jeni Browne, Director of Mortgages for Business, expressed her concerns about the bill, stating, “Government statistics show that only 7% of landlords currently advertise their properties as ‘pet-friendly’. This is not a coincidence. Housing tenants with pets can be costly for landlords, as they can cause property damage and reduce its market value. It is therefore reasonable for landlords to reject tenants with pets as a measure to save costs. Unfortunately, an unintended consequence of the ill-conceived Renters Reform Bill is that three-quarters of landlords feel compelled to raise rents for all tenants, even if only some have pets. It is not surprising that Michael Gove is already reevaluating more than half of the bill. While this legislation will undoubtedly benefit the minority of pet-owning tenants, it does not bode well for a government that should be supporting tenants during a cost of living crisis.”