Landlords may soon be forced to shoulder the cost of pet damage insurance under a proposed amendment to the government’s landmark Renters’ Rights Bill, raising fresh concerns across the buy-to-let sector over escalating costs and risks.
The amendment, tabled in the House of Lords last week, would remove the requirement for tenants to purchase pet insurance if a landlord agrees to allow animals in the rental property. Instead, landlords would be responsible for covering potential damage costs, either through insurance or out-of-pocket repair.
The change marks a significant shift from earlier provisions in the bill, which stated that tenants could request to keep a pet and, if granted, would be required to take out pet damage insurance themselves. Landlords, under the current draft, could reasonably refuse pets on the grounds of property suitability—such as rejecting a large dog in a small flat.
Housing Secretary Angela Rayner previously said the bill aimed to “make it easier for tenants to request the ability to have a pet in their home” while allowing landlords to “require insurance covering pet damage so that everyone is covered and no one is left unfairly out of pocket.”
However, the government now appears to be backing away from that position amid concerns that suitable pet insurance products for rental scenarios are either limited or non-existent.
Baroness Taylor of Stevenage’s amendment would remove the requirement for tenants to “comply with conditions relating to pet insurance,” while a second proposal would prevent landlords from passing the cost of such insurance onto tenants. That has sparked backlash from landlord groups who say the change could increase their exposure to financial risk.
Ben Beadle, Chief Executive of the National Residential Landlords Association, criticised the late-stage change, warning it could drive more landlords out of the rental market. “This change has happened without any consultation with landlords to understand its possible impact,” he said.
Beadle added that the move comes at a time when landlords are already grappling with higher costs, increasing taxation, and complex regulation. “It’s tenants who will lose out as landlords become more risk averse.”
The government estimates that the Renters’ Rights Bill—which also includes a ban on Section 21 “no-fault” evictions and a shift to open-ended tenancies—will come into effect in early 2026. But campaigners argue the revised pet clauses could create further tensions between tenants and landlords.
The Renters’ Reform Coalition said tenants should not face extra fees to exercise what should be “a basic right.” Meanwhile, an alternative amendment from the Earl of Kinnoull suggests landlords could still seek a pet damage deposit from tenants worth up to three months’ rent—an idea that has also sparked concern over affordability.
With nearly half of landlords reportedly considering selling up or exiting the market, the outcome of the ongoing legislative debate could further shape the UK’s fragile rental landscape in the year ahead.
