Discrimination against people on housing benefit revealed in new report from Shelter and NHF

A new Shelter and NHF report reveals discrimination against housing benefit tenants is rife

Five of England’s leading letting agents actively discriminate against tenants on housing benefit, according to a new report by Shelter and the National Housing Federation (NHF).

In an undercover investigation carried out by Mystery Shoppers Ltd. 149 regional letting agent branches were called by researchers posing as prospective tenants. A shocking one in ten had a branch policy not to let to anyone on housing benefit, regardless of whether they could afford the rent.

The worst offender out of the six big brands investigated was Haart, with an outright ban on housing benefit tenants in a third of the branches called (8 out of 25). The only letting agent not to have any bans in place, was Hunters (0 out of 25).

The research also exposes the wider uphill struggle faced by housing benefit tenants. Almost half (48%) of branches called said they had no suitable homes or landlords willing to let to someone on housing benefit.

Appalled by the findings, the two housing organisations have joined forces to urge letting agents and landlords to remove these bans, which they argue are both grossly unfair and likely to be unlawful.

The failure of successive governments to build enough social housing means that there are an estimated 1.64 million adults who now rely on housing benefit to help with expensive private rents. The majority are women – especially single mothers with childcare responsibilities. People who receive disability benefits are also three times more likely to need a housing benefit top-up.

Consequently, under the Equality Act 2010, letting agents who reject housing benefit tenants outright could be at risk of breaking the law because of indirect discrimination against women and disabled people.

Polly Neate, chief executive of Shelter, said: “This ugly undercurrent of discrimination is wreaking havoc on hundreds of thousands of people’s lives. ‘No DSS’ is an outdated and outrageous example of blatant prejudice.

“Private renting is now so expensive that many people simply can’t get by without some housing benefit, even if they’re working. At Shelter we hear from families – who’ve always paid their rent – being pushed to breaking point after having the door repeatedly slammed shut on them just because they need housing benefit.

“Rejecting all housing benefit tenants is morally bankrupt, and because these practices overwhelmingly impact women and disabled people, they could be unlawful. That’s why we’re urging all landlords and letting agents to get rid of housing benefit bans, and treat people fairly on a case by case basis.”

David Orr, chief executive of the National Housing Federation, which represents social landlords of around 6 million people, said: “Many housing associations were set up in the 50s and 60s to house people who could find nowhere else to live due to blatant racism from private landlords and letting agents who told them “No Irish, no blacks, no dogs”. Letting agents should be ashamed that discrimination is still happening today in the form of an outright ban on people simply because they depend on housing benefit. We know this is purely based on prejudice.

“The homeless shelters and charities housing vulnerable people that we represent, find it increasingly impossible to help their residents move in to their own independent home. Often, nowhere in the private rented sector will take someone on benefits and the chronic shortage of social housing means often none of this is available. Landlords and letting agents must see sense and assess people on a case by case basis, whilst Government urgently need to invest in the building of new social homes.”

Case study: Lauren, 47, is a single mother, holding down three jobs. She has lived in the same privately rented home in Lewes for 14-years, and has always paid her rent on time. Unfortunately, due to recent increases in her rent, Lauren is searching for a cheaper home.

Lauren said: “I looked for a private rented place which might be more affordable but everywhere says no DSS. The letting agents I called were all so dismissive and rude, there was no leeway. The experience was horrible and very uncomfortable and unsettling. There is huge discrimination, everyone is tarred with the same brush, and it’s unfair.”

A joint Shelter and National Housing Federation story.

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Breaking News

First-time buyer purchases up 59% in race to complete ahead of stamp duty deadline

Missing stamp duty deadline to cost homebuyers £6,512 as mortgage demand surges in race for completion  Spending on mortgages and rent grew by 7.7.% in February, up 5.7 percentage points from January, according to the latest Barclays Property Insights report. The report has also discovered that homebuyers could be faced with additional costs of £6,512…
Read More
Breaking News

Half of Private Renters Reliant on Benefits Face Rent Shortfall

Almost half of all private renters in receipt of housing benefits experience a shortfall between the support they receive from government and their monthly rents. That’s according to a new analysis by the National Residential Landlords Association (NRLA) ahead of a planned freeze of housing benefit rates in April. The most recent official data reveals…
Read More
Estate Agent Talk

What Are the Tax Benefits for Homeowners?

Owning a home is one of the most significant financial commitments an individual can make, but it also comes with several tax benefits that can help offset costs and improve overall financial well-being. The tax code includes numerous provisions designed to incentivize homeownership, making it easier for homeowners to save money through deductions, credits, and…
Read More
Breaking News

New financial sanctions reporting obligations will apply to all letting agents

From 14 May 2025, financial sanctions reporting obligations will apply to all letting agents working throughout the UK as amended guidance and regulations made by the Office of Financial Sanctions Implementation (OFSI) come into force. Letting agents need to be aware that in contrast to the Money Laundering Regulations, the reporting obligations will apply to…
Read More
Estate Agent Talk

Can You Make Purchasing A Property Easier For Yourself?

Can you make purchasing property easier for yourself? Yes, you can. Despite what some people may think, there are various ways in which you can make yourself a more attractive buyer, and put yourself in a better position to be accepted for things like mortgages. It takes a fair amount of work though, and you’re…
Read More
Love or Hate Rightmove
Breaking News

Rightmove House Price Index: Decade-high choice to benefit Spring buyers who miss stamp duty deadline

  The average price of property coming to market for sale rises by 1.1% (+£3,876) this month to £371,870, in line with the long-term March average increase, as many new sellers price sensibly amid decade-high competition to sell: While new Spring buyers will not beat this month’s stamp duty deadline, they will benefit from the…
Read More