The rental industry is facing growing uncertainty amid conflicting decisions over pet-related costs in the upcoming Renters Rights Bill.

Under the proposed legislation, blanket ‘no pets’ clauses will be banned, requiring landlords to accept animals unless a valid reason for refusal is given. While many support greater pet-friendly access, stakeholders insist landlords must be shielded from potential damage caused by tenants’ animals.

Early recommendations called for mandatory pet insurance, allowing landlords financial protection. However, during parliamentary debate, MPs rejected the idea of placing the cost burden on tenants leaving landlords without a clear safeguard and the sector scrambling for alternative solutions.

In a new twist to the Renters Rights Bill, lawmakers have proposed an amendment allowing landlords to request a pet-specific deposit capped at the equivalent of three weeks’ rent.

This latest shift follows a string of policy reversals that emerged during the Bill’s late-stage debate in the House of Lords. With the legislation now due to return to the House of Commons next week, it remains unclear whether the amendment, or others introduced in recent days, will make it into the final version of the law.

The operations director at a property software company, comments: “Even if this new amendment does pass, we lack absolute clarity about where the deposit money will come from. Can we be sure that the three-week pet deposit won’t be taken from the standard five-week security deposit? Because if it is, it renders the new pet-deposit non-existent in anything other than rhetoric.

“If, on the other hand, landlords will be able to charge the pet deposit on top of the security deposit, it raises big questions around affordability. After all, the security deposit is being capped at the value of five-weeks rent because that’s how much it has been deemed tenants can afford. So if we start adding another three weeks on top, does it not become unaffordable?”

She says the major players such as agent associations, deposit services, ombudsman and inventory professionals - “all need to work together as agents, landlords, and tenants all need clarity on how risk will be managed, disputes handled, and evidence evaluated. If the industry wants pet-friendly tenancies to succeed, the solution has to be practical, credible, and based on how damage is actually documented and adjudicated today. In order to avoid the creation of a bad law, it’s time for the sector to create a workable framework that protects everyone involved.”

With legal protections and enforcement mechanisms still unsettled under the Renters Rights Bill, property experts are advising landlords and letting agents to take practical steps to safeguard their assets from potential pet-related damage.

They urged to take preventative measures ahead of Pet Law changes such as; -

• Updating tenancy contracts to align with incoming legal requirements around pet acceptance,

• Providing clear documentation that outlines legitimate grounds for refusing pets.

• Scheduling regular property inspections for homes with animals

• Implementing small rent increases to help mitigate future repair costs

• Maintaining comprehensive records of pet requests, landlord decisions, and any damage incurred

Until clearer guidance emerges, landlords are being encouraged to act decisively and build robust protections into their tenancy management.