It is not unlawful discrimination for an agent or landlord to refuse to let to a prospective tenant who is on benefit.
Receipt of benefits is not one of the protected characteristics as set out in the Equality Act 2010.
A new paper, placed in the House of Commons library this week, specifically addresses the issue of letting to benefit claimants.
It says there are a number of reasons why landlords do not let to claimants: they associate them with rent arrears, anti-social behaviour and damage to property.
A key concern is that Local Housing Allowance is paid to claimants, not landlords. The claimants are trusted to pass the money to their landlords, rather than spend it on other things.
Another issue for landlords is that market rents in their areas may be far higher than LHA.
A newer issue is the roll-out of Universal Credit, where all benefits are paid as one.
Lenders and insurers can also be problematic when a landlord is letting to claimants.
The new paper gives no definitive information on the extent to which claimants are turned away as private tenants, but quotes evidence, including a 2016 survey for Crisis.
This found that 55% of landlords are unwilling to let to tenants on benefits.
While a bit of a history lesson, it is an interesting and balanced report – usefully read by housing campaigners as well, we would suggest, as those new to working in the private rented sector.
http://researchbriefings.parliament.uk/ResearchBriefing/Summary/SN07008#fullreport
With how the govt are moving at present they are bound to add it to this list and make it a criminal offence to decline a tenant because they are on benefit. Why not go the whole hog and make it a criminal offence to decline a tenant for any reason. That would solve the housing crisis.
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sssshhhhhhhhhhhh! Don’t give them any ideas!
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EYE touched on this subject last week. Its has never been discrimination but no doubt sooner of latter some “Red” is going to make it so. What is always missing in the argument is the fact that in the event of the tenant owing money to the landlord, if they are on benefits ….. whistling in the wind is the best they can hope for, so no surprise that many landlords stay away from DSS.
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