Pet Deposits and Clarity Still Required Regarding Renters’ Rights Legislation – Propertymark – TNT

Propertymark is calling for greater clarity on key areas of the Renters Rights Bill, along with proposed legislation that would allow for an additional pet deposit now that the UK government has tabled amendments to remove pet insurance requirements.

The trade body highlights that there remain long-standing concerns about the capacity and capability of the courts, with the time from claim to hearing continuing to rise. The Bill in its current form may lead to an increase in contested hearings, as landlords that would previously have used Section 21 provisions will instead have to show evidence for the reason for eviction.

Propertymark argues that a long and varied lead in time of at least six months would allow the 23,000 letting agent businesses in England to prepare, understand the changes, update their CRM and IT systems and be best place to support tenants and landlords.

It also wants the government to consider extending deposit cap requirements to support its amendment to tackle the issue of rent in advance as well as allow more landlords to meet the additional risk and cost of having pets in the property. Propertymark reports to research that shows 57% of landlords and agents were unable to recoup the costs of pet damage.

Since the introduction of the Tenant Fees Act, Propertymark has long campaigned for pet deposits because the legislation does not allow deposits to be set at a more flexible level to reflect the greater risk of renting to tenants with pets.

“Without allowing pet deposits, the UK Government risk further undermining their efforts to support tenants to rent with pets,” said Timothy Douglas, head of policy and campaigns at Propertymark.

In addition, Propertymark wants the UK government to enact the registration of short-term rental property requirements as passed in the Levelling-up and Regeneration Act 2023 alongside these reforms to level the playing field for landlords and the long-term rental market.

With fixed-term tenancies being abolished, Propertymark says it is important that the government extend Ground 4A to one-and two-bedroom houses and flats used for students. Under Ground 4A, student Houses of Multiple Occupation (HMO) will receive a special dispensation, allowing landlords to reclaim properties to prepare for the next cohort of students, but this crucial protection does not extend to one- and two-bedroom properties, which are in the vast majority of circumstances not registered HMO.

Nathan Emerson, CEO at Propertymark, commented: “Further last-minute changes by the UK Government to the Renters’ Rights Bill that haven’t been consulted on are disappointing as letting agents plan for change. Report Stage [currently taking place in the House of Lords] allows for another opportunity for the UK government to engage with the sector and ensure the legislation is fit for purpose and reduces costs for landlords and tenants.”