England's new rent rules shift pet damage risk to landlords
A 50% drop in pet-specific rental searches suggests tenants are withholding animal disclosures, leaving property investors exposed to uninsured damage costs under the new Renters' Rights Act.
Searches for pet-friendly rental properties on Rightmove fell by 54% in May and 52% in June compared to a year earlier. The drop follows the introduction of England's Renters' Rights Act.
The legislation prevents landlords from unreasonably refusing pets. However, the sharp decline in proactive filtering suggests a shift in tenant behaviour rather than a lack of demand, with pets remaining the most searched-for property feature overall.
Letting agents warn that tenants are now strategically delaying pet disclosures until after signing tenancy agreements or during property inspections. "The reality is that tenants now understand the balance of power has shifted," said Marc von Grundherr, director of agency Benham and Reeves. "Landlords can no longer rely on a blanket 'no pets' policy to deter applications and should instead expect conversations around pet ownership to arise much later in the letting process."
This late-stage disclosure creates a distinct financial exposure for property investors. Under the new framework, landlords cannot legally demand an additional deposit to cover potential pet damage, nor can they compel tenants to take out specific insurance. "Many landlords have legitimate concerns about the risk that some irresponsible pet owners pose to rental properties," said Chris Norris, chief policy officer at the National Residential Landlords Association.
Recouping costs relies entirely on end-of-tenancy deposit deductions. Lesley Horton, the UK's chief property ombudsman, confirmed that landlords cannot levy standalone pet surcharges, as such fees fall outside legally permitted charges. Any compensation for proven damage must come from the standard security deposit.
The evolving dynamic adds operational complexity for letting agencies managing portfolios. Agents must navigate a tighter regulatory environment where enforcing property standards against undisclosed animals requires meticulous documentation. Russell Hunt, founder of Pets Lets, noted that some landlords are still finding excuses to refuse tenants with animals, suggesting a market friction that specialised services are trying to bridge.
Industry bodies emphasize that the law still allows landlords to reject pets for valid reasons, such as property size, freeholder restrictions, or allergies. "Landlords must consider requests fairly and cannot unreasonably refuse them, but they can still decline where there is a valid reason," said Megan Eighteen, immediate past president of ARLA Propertymark. She noted significant "potential for misunderstanding" among tenants who may incorrectly assume pet permission is now guaranteed.
