If you are a landlord, you are almost certainly aware that some private rental tenancies specifically exclude benefits claimants or so-called ‘DSS claimants’ (despite the fact the Department of Social Security no longer exists).
A landmark court case – in a judgement issued by York County Court and reported by the charity Shelter on the 14th of July – ruled that the specific exclusion of such claimants may amount to discrimination and is, therefore, unlawful.
The grounds for discrimination
Legal action has been threatened before from tenants who have fallen foul of landlords’ ‘no DSS’ policies. In previous cases, however, they were settled out of court. The current ruling – involving a single mother given the fictitious name of “Jane” – is the first to have come before the courts.
In her ruling, the District Judge found that landlords who exercised a blanket ‘no DSS’ policy – in this case, rejecting applications solely because the prospective tenant receives housing benefit – are acting unlawfully. They are exercising unlawful discrimination on the grounds of sex and disability, ruled the judge. In contravention of the Equality Act 2010, explained a report by the BBC on the 14th of July.
Letting agents, OpenRent offered an explanation on the 27th of July. They said: “The issue is not the wording, but whether the landlord or lettings agent is universally rejecting all applications from tenants who claim benefits.”
Also, they noted that advertising ‘no benefits claimants’ or ‘no DSS’ could be interpreted as discriminatory. This is because women are more likely to receive child care benefits and any exclusion of tenancy applications from women might, therefore, be considered to discriminate against women.
A question of wording
The letting agents also make the point, however, that there is no suggestion of landlords being denied their right to pick and choose the tenants they want.
It is invariably a question of the landlord considering any tenancy application on its individual merits. Where the landlord may fall foul of the law – and the Equality Act in particular – is by adopting and specifically advertising a blanket prohibition against prospective tenants from any specific class or group, such as benefits claimants.
Still, other landlords, suggests the letting agent, may not overtly advertise a ban on tenants claiming benefits, but who are nevertheless exercising a “secret” ban on such applications.
According to Shelter, as many as 63% of all private sector landlords say they do not let to – or prefer not to let to – tenants who receive housing or other welfare benefits.
What can landlords do?
To stay on the right side of the law, look at your advertisement wording carefully and focus on who you do want to attract. By focusing on who you do want, you are allowing any potential tenant to self-select. If, for example, you welcome tenants who receive benefits, then including that on the wording – ‘Accept DSS income’ or ‘DSS welcome’ type wording – means tenants in that category will quickly be able to identify you as someone who may accept them.
Finally, don’t forget to inform your lettings agents too of any updated wordings etc.
