The legislation makes it unlawful for landlords or letting agents to reject applicants simply because they receive benefits or have children, bringing these practices within the scope of prohibited discrimination.
Writing on her landlord blog, solicitor Tessa Shepperson warns that landlords who fall foul of the rules could face significant consequences. If a tenant can show they were treated unfairly, they may be able to pursue compensation under the Equality Act, while councils also have the power to issue civil penalty notices for breaches.
Courts are expanding the scope of ‘indirect discrimination’ as the Equality Act 2010 already bans landlords and letting agents from treating tenants unfairly on the basis of protected characteristics
This includes age, disability, race, religion, and marital or civil partnership status — the law does not explicitly cover people who receive benefits or families with children.
However,solicitor Tessa Shepperson notes that the courts have increasingly accepted claims of indirect discrimination, where a policy or practice disproportionately disadvantages a particular group even if it is not targeted at them directly.
Shepperson explains that under the Equality Act, tenants who can show they were discriminated against may pursue compensation, and that this developing case law means landlords need to be especially cautious about blanket policies that could have discriminatory effects.
She wrote in her blog: “For a long time, it was assumed that because of this, it was acceptable for landlords to refuse tenants on this basis. However, in recent years, courts have been developing rules for ‘indirect discrimination’.
“This is where a policy or practice which appears to avoid the protected characteristics actually puts someone with a protected characteristic at a disadvantage.
“So, having a policy to refuse to accept people on benefits or with children can be discriminatory indirectly, as these people are more likely to be women and sex is a protected characteristic.”
Landlords urged to keep thorough records as discrimination rules tighten
Tessa Shepperson cautions that the Renters’ Rights Act’s new protections for tenants on benefits and families with children could expose landlords to dual sanctions: a potential Equality Act compensation claim and a council-issued civil penalty of up to £7,000.
She stresses that the legislation does not force landlords to accept every applicant in receipt of benefits. However, landlords will need clear, well-kept records showing how decisions were made to demonstrate that refusals were based on legitimate criteria rather than discriminatory practice.
Shepperson said: “Landlords and agents should treat those on benefit or with children in the same way as anyone else.
“Section 41 of the Renters’ Rights Act makes it clear that landlords can take income into account when considering whether an applicant would be able to pay the rent on a tenancy. If the rent is clearly unaffordable for that applicant, the landlord cannot be penalised for rejecting them and choosing someone else.
“If a property is clearly unsuitable for children, then so long as this is clear and set out in your records, a landlord/agent will not be penalised for choosing someone else.”
Tessa also stresses that landlords need to take particular care with the language they use when marketing a property, advising them to describe the home itself rather than the type of person they think should live in it.
Instead of phrases such as “unsuitable for disabled people and those with mobility problems,” which could be interpreted as discriminatory, she says landlords should stick to factual details about the building — for example: “the flat is on the sixth floor of a block with steep stairs and no lift.”
She also urges landlords to keep written notes setting out why applications were declined and how decisions were reached, warning that careless wording or poor record-keeping could leave them exposed to Equality Act compensation claims and council-issued fines.