Benefit discrimination: where do I stand as a landlord?

The new anti-discrimination laws are the only part of the Renters’ Rights Act 2025 that also applies in Wales and Scotland. As such, it is one of the most discussed laws among UK landlords. In this article, we answer commonly-asked questions on benefit discrimination in the private rental sector.

Q. Can I use ‘no DSS’ or ‘no benefits’ when advertising?

A. No, those terms count as discrimination. Also banned are the phrases: ‘no Housing Benefit’, ‘no Universal Credit’ and ‘professionals only’. You must not create an advert or consent to a listing that excludes or puts off tenants who receive benefits.

Q. Can I use my mortgage as an excuse not to accept tenants who receive benefits?

A. While the terms and conditions of some mortgage lenders prohibited landlords from renting to tenants who receive benefits, the new anti-discrimination legislation overrides any small print. Such clauses don’t count and can’t be enforced.

Q. What if my insurance policy stipulates I can’t rent to tenants receiving benefits?

A. Some insurance policies will state that the landlord isn’t permitted to rent to tenants receiving benefits. This condition may be enforceable but only until the insurance policy expires or at renewal.

Q. Do benefits count when conducting affordability checks?

A. Landlords and letting agents are required, by law, to include any benefits received when conducting affordability checks. Benefits should be treated in the same way as an earned wage. It would count as discrimination if a landlord knowingly knew a referencing agency did not include benefits in an affordability check.

Q. Can I refuse an applicant if their income doesn’t meet the rent advertised?

A. Yes. While landlords can’t outright refuse to consider tenants who receive benefits, they can still turn an applicant down if checks prove they won’t be able to afford the rent - even when benefits are part of the equation.

Q. Do I need to amend the contracts I issue?

A. This depends where your rental properties are. 

• In England: existing tenants must have been served the Government-issued Renters' Rights Act Information Sheet by 31st May 2026. Any wording in existing contracts that banned tenants in receipt of benefits automatically became invalid on 1st May 2026. All new assured periodic tenancy contracts must be free of discrimination. 

• In Scotland: any wording in existing contracts that banned tenants in receipt of benefits automatically became invalid on 1st May 2026. A new Model Scottish Secure Tenancy Agreement has been published for new tenancies created on or after 1st August 2026.

• In Wales: all tenancies starting from 1st June 2026 require Welsh landlords to use a new standard occupation contract that includes anti-discrimination information. Welsh tenants with existing standard occupation contracts should have been notified of the new anti-discrimination laws by 14th June 2026.

Q. Can I be reported if I say the wrong thing?

A. Yes, discrimination against tenants who receive benefits includes verbal discrimination as well as discrimination in print and online. Landlords should be mindful of what they say if they speak to a renter on the phone or meet them in person. For example, a landlord can’t say ‘I’d prioritise a professional tenant in full-time employment’.

Q. What are common examples of benefit discrimination?

A. Direct discrimination includes: point-blank refusal to consider applicants who receive

benefits; withholding property information from people who receive benefits and refusing viewing requests from people who receive benefits.

Indirect discrimination includes: telling an applicant who receives benefits that a property has been let when it is still advertised as available; not counting benefit income in affordability checks and only referencing tenants in full-time employment.

Q. What happens if I breach anti-discrimination legislation?

A. It is illegal to discriminate against a tenant who receives benefits. There are harsh financial penalties if you are investigated and found guilty. Fines can be up to £7,000 per breach in England and Wales, and landlords can also be fined if they’ve failed to inform their tenants about new anti-discrimination laws. The fine is currently £1,000 in Scotland. Penalties can increase for repeat offenses. 

If you still have questions about anti-discrimination laws, tenants who receive benefits and the wider implementation of the Renters’ Rights Act 2025, please contact us.