Can a Landlord Charge a “Pet Deposit” or Demand Insurance? (2026 Pet Rules Explained)

Phase 1 of the Renters’ Rights Act officially came into effect on May 1, 2026, and it brought a massive wave of confusion for renters with pets.

Originally, the government proposed a rule that would allow landlords to demand tenants buy “pet insurance” to cover potential damage. But at the final hour, that rule was scrapped.

Now, landlords and letting agents are panicking. To protect their properties, many are trying to quietly introduce “pet deposits” or illegally writing mandatory insurance into new contracts.

If your landlord has suddenly demanded extra cash or an insurance policy for your dog or cat, stop. You might be the victim of an illegal fee. Here is exactly what the law says as of May 2026, and a free template to fight back.

The “Pet Insurance” Myth (The Scrapped Rule)

Let’s clear up the biggest source of confusion right now.

When the Renters’ Rights Act was being drafted, landlords fought hard for the right to force tenants to buy pet insurance. It made headlines everywhere. However, when the bill actually passed into law, this provision was removed.

The Verdict: Under the Tenant Fees Act 2019, any mandatory fee that is not rent, a capped deposit, or a utility bill is an illegal prohibited payment. Your landlord cannot legally force you to take out a pet insurance policy.

Can They Charge an Extra “Pet Deposit”?

This is the most common trick letting agents are using right now. They will say: “Okay, no insurance, but we require a £500 Pet Deposit.”

To know if this is legal, you have to look at the 5-Week Rule. Under UK law, a tenancy deposit is strictly capped at a maximum of 5 weeks’ rent (for properties under £50,000 a year).

• The Reality Check: If your current deposit is below 5 weeks’ rent, your landlord can ask for a higher deposit – but only up to that 5-week maximum, and it’s just a regular deposit. There is no such thing in law as a dedicated “pet deposit.”

• The Reality: 99% of landlords already charge the absolute maximum 5-week deposit when you move in. If your deposit is already maxed out, charging a single penny more for a ‘pet deposit’ is a prohibited payment under the Tenant Fees Act 2019, enforceable by your local council with fines of up to £5,000 for a first offence.

The “Pet Rent” Workaround

While lump-sum deposits and forced insurance are illegal, landlords do have one legal weapon left: Pet Rent.

A landlord is legally allowed to charge a slightly higher monthly rent for a tenant with a pet (e.g., an extra £25 to £50 a month). However, they cannot spring this on you in the middle of a fixed-term contract. They can only introduce this when you sign a new tenancy agreement or during a formal rent review.

Free Template: How to Refuse an Illegal Pet Fee

If your letting agent or landlord is trying to force a pet deposit or insurance policy on you, do not argue. Just state the law. Copy and paste this exact email.

Subject: Regarding your request for a Pet Deposit / Insurance – [Your Address]

Dear [Landlord/Agent Name],

I am writing regarding your recent request for a [Pet Deposit / mandatory Pet Insurance policy] for my tenancy at [Your Address].

While I understand your desire to protect the property, I must respectfully point out that under the Tenant Fees Act 2019, forcing a tenant to purchase an insurance policy is a Prohibited Payment. The government explicitly scrapped the pet insurance provision from the Renters’ Rights Act prior to it passing into law.

Furthermore, my current tenancy deposit of £[Amount] already meets the legal maximum cap of 5 weeks’ rent. Therefore, an additional “pet deposit” cannot be legally applied to this tenancy.

I am fully committed to returning the property in the same condition it was let to me, and I am happy to discuss this further, but I cannot agree to terms that constitute a prohibited payment under UK law.

Sincerely, [Your Name]