It has been widely reported that pet ownership increased during the pandemic, with many turning to furry or feathered companions for comfort and to keep loneliness at bay.
The United Kingdom was already known to be a nation of animal lovers pre-pandemic, so why is there a history of prohibiting animals in buildings where property is owned with a leasehold structure; and how is this changing post-pandemic?
In London, where this Zoom IN is focused, the majority of property is either freehold,
share-of-freehold or leasehold property. Owners of a property such as a freehold house are free to have as many pets as they wish, within the boundaries of the legislation of the Animal Welfare Act of 2006. In the case of a shared freehold or a leasehold property, this may not be the case.
As in much of the legislation surrounding the property market, it’s becoming more and more clear, that the antiquated system, is less and less fit for the modern age and is in dire need of reform. Pet ownership and the way we live and work has increased and changed rather radically, in recent times especially, and it is essential for property ownership structures to change with the times or risk genuine repercussions to its value and transactionability, which this Zoom IN will explore.
The facts, the demographics and the legislation and why it should change in modern Britain’s property sector.
There are an estimated 51 million pets residing in homes across the United Kingdom. Considering that the UK has a population of approximately 66 million, that means there is more than one pet in every other home across the nation.
According to Pet Plan’s pet census in 2018 and insights from over 60,000 UK pet owners, Britain’s favourite pet is the dog, winning by a landslide. 67% of the census respondents were dog owners.
Coming in at second place on the pet popularity scale is cats, with 45% of the census respondents being feline fans. Surprisingly, third place was fish at 9%, closely followed by pets, such as rabbits, horses, reptiles, rodents and birds which all averaged between 4% and 2%. However, a significant number of pet owners have more than one type of pet, with 31% owning both a dog and a cat, and 84% of horse owners owning at least one dog.
Obviously there aren't too many central London homes that have the space for keeping horses. According to statista.com, pet ownership in London has increased to 59%. A staggering percentage. The demographics in London show that 61% of homes with pets have a dog and 51% a cat or cats.Evidence also shows that the more expensive a property is in central London, the more likely it is that there will be dogs in residence, as well as cats. In London more expensive homes are 60% more likely to have pets.
As estate agents we always ask The Pet Question, just as importantly as the postcode or bedroom quota questions. As despite the shockingly weighted percentages in pet ownership, many buildings and developments still have leases that forbid pets. These clauses vary in restriction and clarity and indeed in obedience by the occupants of residences. Some landlords still refuse to allow pets even if the property itself is unrestricted.
It is surprising that freeholders and freehold companies, and indeed landlords, would willingly exclude over 50% of buyers and tenants as paying customers. It would be like saying you will only sell to women instead of men, or only to people with black or brown hair. You simply would not do this. Leases can be amended relatively cheaply and a pet clause allows for removal of problem animals or allows for compensation to be made for damages caused. If you remove half of your customer base in any business, you can assume that you will be lowering the value of your products. It’s supply and demand. As Landlords, new legislation is going to make it difficult to refuse a tenant with a pet,
especially if that pet is a comfort animal, confirmed by a medical professional. But what amazes me, is that individuals or freeholders would willingly limit the amount of money they can achieve for an asset instead of modernising an antiquated lease or view.
Leases and the Legislation.
It can vary from lease to lease but the legislation is clear, though its likely changing.
Most leases have clauses regarding pets. While these clauses will vary from lease to lease, it is common for them to prohibit pets, save for where there is written permission from the freeholder or managing agent.
Indeed, the general theme in the leasehold sector, especially in high-rise leasehold premises, has been to fully prohibit the keeping of pets. However, there may be change in the air, according to Brady Solicitors. In the UK we have the Dogs and Domestic Animals
Bill. This bill aims to limit a landlord’s ability to impose a strict ‘no pets’ rule in rented
accommodation. At present, this draft bill only considers assured short hold tenancies, rather than leasehold properties, but it does perhaps suggest a softening of attitudes and a recognition of the importance of domestic pets to many individuals’ sense of wellbeing. This, as well as the steep increase in working from home and the consequential increase in pet ownership, increases the need for legislation to be made more inclusive.
Pet related businesses such as dog walking and doggy day-care have also made the keeping of animals in the home much more accessible and indeed humane.
The UK Dogs and Domestic Animals Bill has so far reached its second reading in the House of Commons and must still make its way through the third reading and then The House of Lords before it can be given Royal Assent. King Charles is likely to be a fan, as an animal lover, though he can no longer opine as much.
Smith & Ericsson has never seen as many enquiries for properties that allow animals, than in the last two years. Indeed as agents for over twenty years, the curve has never been steeper. As trends in properties come and go, pet ownership is unlikely to wane, as for many pet owners, especially domestic animal owners, their pet is a member of the family, as treasured as a child or partner. If asked to choose between the animal and their ideal home, it is the home that will be disregarded.
So is it easy to place pet owners in property in London in 2022?
Let’s start with Leasehold flats.
There are certain buildings where we are aware that leases prohibit pets with no exceptions. These properties therefore are immediately ignored by agents when dealing with pet owners, but increasingly we are seeing new developments with leases that allow pets, with a detailed pet clause that ensures any animal that causes a nuisance or are the subject of regular complaints by residents can be removed. We are also seeing some older leases being amended, as residents either wish to have pets themselves, or are aware that the value of the property may be negatively affected by prohibiting pets completely.
Freehold or Share of Freehold Properties.
It is considerably easier when a property is a Freehold, as there are no leases. With shares in a freehold, especially in smaller buildings, there is far more flexibility and residents, who are often part of a resident’s association, can decide collectively to make changes with relative ease. We often have buyers who prefer to buy this type of property,
especially if leases are old or unreasonable.
Our Recommendations:
Consider a lease very carefully when purchasing, or even renting a property. Even if you don’t own a pet, you may wish to in the future and certainly, over 50% of your potential buyers or tenants later on, will be out of your reach.
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