## New Discrimination Rules Affecting Landlords and Letting Agents

Landlords and letting agents in the UK must now exercise greater caution when selecting tenants, following new protections introduced by the Renters’ Rights Act. These rules make it unlawful to discriminate against prospective tenants who receive benefits or have children. According to expert Tessa Shepperson, breaches of these rules can lead to compensation claims under the Equality Act 2010 or civil penalty notices issued by local councils.

## Equality Act 2010 and Indirect Discrimination Explained

The Equality Act 2010 prohibits discrimination based on protected characteristics such as age, disability, marriage or civil partnership, race, and religion. However, receiving benefits or having children are not explicitly listed as protected characteristics. Despite this, courts have increasingly recognised the concept of “indirect discrimination.” This occurs when a policy or practice that appears neutral disproportionately disadvantages people with protected characteristics.

Tessa Shepperson highlights that refusing tenants on benefits or with children can amount to indirect discrimination because these groups are more likely to include women, and sex is a protected characteristic. She notes:
“For a long time, it was assumed that because of this, it was acceptable for landlords to refuse tenants on this basis. However, in recent years, courts have been developing rules for ‘indirect discrimination’.”

## Practical Implications for Landlords Under the Renters’ Rights Act

The Renters’ Rights Act extends protection to tenants on benefits and those with children, meaning landlords could face compensation claims under the Equality Act alongside council fines of up to £7,000. While landlords are not required to accept tenants on benefits, it is crucial they maintain clear and detailed records to demonstrate compliance with discrimination laws.

Shepperson advises landlords and agents to treat applicants on benefits or with children the same as any other prospective tenant. She explains:
“Section 41 of the Renters’ Rights Act makes it clear that landlords can take income into account when considering whether an applicant would be able to pay the rent on a tenancy. If the rent is clearly unaffordable for that applicant, the landlord cannot be penalised for rejecting them and choosing someone else.”

Additionally, if a property is genuinely unsuitable for children, landlords should document this clearly to avoid penalties.

## Advertising Properties: Focus on Features, Not Tenants

When marketing properties, landlords should avoid language that could be interpreted as discriminatory. For example, rather than stating a property is “unsuitable for disabled people and those with mobility problems,” landlords should describe the property’s physical characteristics, such as “the flat is on the sixth floor of a block of flats with steep stairs and no lift.” This approach helps prevent claims of discrimination based on disability.

## Importance of Record-Keeping in Tenant Selection

Tessa Shepperson emphasises the importance of keeping written notes explaining the reasons for refusing applications and the selection process. Poorly worded advertisements or weak records could lead to compensation claims under the Equality Act and council fines.

For further detail, landlords can read Tessa Shepperson’s full blog post on discrimination rules at landlordlawblog.co.uk.