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 ‘No DSS’ is an outdated and outrageous example of blatant prejudice.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

Kerb appeal
Estate Agent Talk

Why November and December are the best and most affordable months to buy

Buyers and sellers looking for the right time to move can consider top reasons from property experts to start the process this November and December. The autumn and winter months may not be the first that come to mind when considering a move, but potential buyers and sellers can be reassured by the experts that…
Read More
Breaking News

Farmers protest outside Westminster today in anger at the IHT ongoing debate – expert legal view

With today’s news about farmers set to protest outside Westminster in anger at the IHT ongoing debate, Tom Gauterin, Director at national law firm Freeths, said: “Although it is good to hear Mr Reed last week suggest that the Government is listening to farmers, today’s protests would suggest otherwise with the extent of their concerns…
Read More
Love or Hate Rightmove
Breaking News

Bank Rate cuts boost optimism for 2025 despite Budget pause

Average new seller asking prices drop by 1.4% (-£5,366) this month to £366,592, a bigger fall than the usual, seasonal 0.8% drop seen at this time of year, likely due to pre- and post-Budget jitters However, despite the dampening effect of the Budget, market activity remains stronger than last year as Bank Rate falls: The…
Read More
Breaking News

How to market to Estate Agents UK

The UK’s property sales and letting industry is quite sizable in both volume of work and those employed within. Some 25 million dwellings in England alone exist and there were estimated to be approximately 55,500 estate agents working in the United Kingdom as of the second quarter of 2024. Up and down the country, in…
Read More
Letting Agent Talk

Preventative Measures to Reduce the Risk of Emergencies in a Rental Home

Ensuring that a rental home is safe and well-maintained is essential for both landlords and tenants. Emergencies in a rental property can lead to significant stress, financial loss, and potential damage. However, by implementing preventative measures, landlords and tenants alike can reduce the risk of emergencies and create a safer living environment. This guide provides…
Read More
Estate Agent Talk

Understanding the Metrics Used by Estate Agents to Determine Your Home’s Worth

Determining the value of a property can sometimes feel like a complex process shrouded in mystery. However, understanding the various metrics and considerations that estate agents use to assess your home’s worth can demystify the process and empower you as a homeowner. This blog will provide a comprehensive guide to the key factors estate agents…
Read More