It has been claimed by council officers in Dover, that there is an increasing trend in the area where lettings agents and private landlords are starting to become "more selective", when taking on new tenancies from benefits claimants.

A local newspaper reported that one family was turned down by every agency in Dover. Critics and campaigners have long held fears that this trend may spread across the whole of the country, with the oncoming Universal Credit rollout.

With the advent of Universal Credit, councils will no longer pay the landlords direct who are housing tenants on benefits. The onus of responsibility of paying rent will be placed squarely on the shoulders of the claimants when they are given one monthly payment.

Damian Wood, his wife and three young children aged four, five and eight had to leave their rented home when their landlord decided to sell the property.

Since June they have been looking for a permanent residence and have contacted every letting agent and private landlord in the town. The only condition that they would be allowed to start a new tenancy, was if they had a guarantor who owned their own property.

Mr. Wood was apparently told by one landlord that to secure a tenancy they would have to provide six months' rent in advance.

Mr. Wood, who is now living in temporary accommodation told the newspaper: "I had to laugh because obviously there is no way someone on benefits can pay six months' rent up front.

"I don't understand it to be honest because at the moment the council are paying them direct so to me it seems less of a risk.

"I think it's because of the way benefits claimants are labelled. It's like we're the scum of the earth."

Councillor Peter Wallace said: "The council housing department have told me it's happening more and more and they are starting to run out of landlords they can approach.

"It's awful they are doing that with no good reason – they are tarring everyone with the same brush. Take JK Rowling, she was on benefits at the time and look at her now."

A Dover District Council spokesman said: "Private landlords in any part of the country are able to decide whether they let their homes to people in receipt of benefits.

"We do not have any data that would show how many landlords do not let to people on benefits in Dover District but there is some anecdotal evidence which indicates that landlords may be becoming more selective."

Richard Merrick of PIMS says: " Universal Credit holds many fears for landlords. Although the majority of claimants are decent honest people there is always a concern that because of the once monthly payment, people will not be able to budget accordingly.

" I cannot understand how there is one rule for England and a different one for Northern Ireland. Northern Ireland has yet to legislate Universal Credit, however they brokered an agreement with Whitehall that a) The claimants would be paid fortnightly and b) The rent would be paid directly to the landlords.

"If there was enough of a "call to arms" to broker the same arrangement in this country and Wales, then perhaps the pressure would cause the government to reconsider this option. After all this is a united Britain and therefore the majority of rules should apply across all borders."