15^th May 2019

Lettings agents are defending landlords who use the type of “No DSS” phrases in properties to rent listings, as many have to because of their mortgage lenders or insurers' terms of conditions.

MPs on the Work and Pensions Committee are holding an inquiry into discrimination against housing benefit claimants and have recently heard evidence from agents, banks and tenants.

Greg Beales, director of communications, policy and campaigns for Shelter, told the committee that listings including terms such as “No DSS” or “no housing benefit tenants” contravened the Equality Act.

He also said the charity had sent out a team of mystery shoppers to 'visit' agents and found that many landlords were warned against renting to benefits claimants as there was every chance that they would wreck their property.

Adam Hyslop, founder of an online letting agent and property service provider, told the committee that landlords are having to include these types of phrases due to the their mortgage provider or insurers' terms not allowing or covering housing benefit tenants, due to the perceived view of how those on benefits behave.

Hyslop said: “It is difficult for tenants to find property, and one of the things that exacerbates that is people applying for properties where they don’t stand a chance of being accepted.

“If a tenant comes to us, it is better to be clear with the no housing benefit requirement.

“To the best of our understanding it is not illegal.”

Helen Buck, executive director of an estate agency, said it has stopped those types of phrases being used in their adverts for tenants.

But she was extremely surprised when examples of listings from her own business included phrases saying that housing benefit tenants would not be considered when they read out in the committee meeting.

She said she would immediately look at the offending adverts once the meeting had been adjourned, she added: “We know some landlords have a policy that they cannot accept a tenant on housing benefit, or don’t wish to, and that’s where we can play a role to help them understand the system.

“We have relationships with local housing teams to help address issues.”

Glynis Frew, chief executive of another agency, told MPs: “We don’t have a blanket policy of turning away housing benefit tenants.

“When we started to investigate it there were a number of adverts that were cut and pasted and can be easily eradicated.

“Of 1,900 properties, fewer than 19 still have this phrase, and we will pursue those.

“For a number of landlords it is the mortgage restrictions. It is not our place as a lettings agent to say you can abide by that rule but not by that one. They have restrictions on mortgages and insurance.”

The committee asked whether all advertising and policies that would not allow housing benefit tenants to be able to rent properties or be covered by landlords' insurers should be 'outlawed'.

Adam Hyslop told MPs that it would become much more difficult to advertise properties if this was brought into force, but the most important thing to do would be to find out exactly why landlords are less likely to let their properties to benefits tenants.

Buck said that the benefit system needs a shakeup as one of the main reasons why landlords are reticent is because Universal Credit takes many weeks before a claimant receives their first payment, and also because landlords are no longer paid directly; in both cases it impacts on landlords being able to keep up with their mortgage payments.

Frew said a code of practice that called for fairness in listings could work, however this should also apply to landlords not using an agent.

Representatives from three lenders, NatWest, the Co-operative Bank and Nationwide, told the committee that they have now discarded all of their past policies telling landlords not to rent their properties to housing benefit tenants.


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