Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 28
28
Accepted in Part
Paragraph: 143
The Government says it will make it illegal for landlords to have blanket bans on...
Recommendation
The Government says it will make it illegal for landlords to have blanket bans on letting to benefit recipients. If this is a commitment to preventing landlords from discriminating against benefit recipients, it is unrealistic. If it is a commitment to preventing landlords from stating explicitly that they will not consider letting to benefit recipients, it is unambitious. Landlords who do not want to let to benefit recipients will simply choose not to do so. The real issue is twofold: there are not enough homes for rent; and local housing allowance rates have not kept pace with the market in recent years. We call on the Government to explain in response to this report how it intends to prevent landlords from refusing to let to benefit recipients, and we again recommend that it uprate local housing allowance rates so that housing benefit better covers the cost of renting in the private rented sector.
Government Response Summary
The government will prohibit blanket bans on benefit recipients, but landlords can still make final decisions based on referencing checks. They will work with the insurance sector, explore improvements to welfare support information, and raise awareness of services provided by local councils.
Paragraph Reference:
143
Government Response
Accepted in Part
HM Government
Accepted in Part
Prohibiting blanket bans on those in receipt of benefits or with children is an important step to protect prospective tenants and their families. It will help make sure that low- income tenants and families don’t fall at the first hurdle when they look to rent a property in the private rented sector. Landlords and agents will have the ability to make a final decision on who to let their property to and carry out referencing checks within the law to ensure a sustainable tenancy for both parties. This policy is not designed to force landlords to prioritise renting to prospective tenants in receipt of benefits ahead of other applicants. However, they will not be able to use blanket bans as part of the letting process and we will support landlords to take informed decisions on prospective tenants’ individual circumstances. The proposed ban will help prevent blanket discriminatory practices and provide a route for action if not adhered to. If a prospective tenant believes that they have been discriminated against, they will be able to seek enforcement action through the relevant local council or a resolution though the new Ombudsman and existing letting agents redress schemes. We are working closely with local councils to ensure the policy is deliverable on the ground. We will provide clear guidance for landlords, letting agents, tenants, and enforcement authorities to make all partners aware of the new legislation and how to update their practice. There is more work to do to ensure low-income tenants and families can fully participate in the private rented sector. We will: • work with the insurance sector to ensure landlords and letting agents are not prohibited from letting their properties to tenants in receipt of benefits or with children as part of their terms and conditions; • explore improvements to welfare support information for both tenants and landlords; and • raise awareness of the range of services provided by local councils and partner agencies to help people living on a low wage or in receipt of benefits agree and sustain a private rented sector tenancy.