Can a landlord refuse a tenant on housing benefits?

There was a point in time when landlords were allowed to add ‘No DSS’ to their property listing within the UK rental market. This is no longer the case, however, and landlords can’t refuse tenants on housing benefits. With the major regulation updates as a result of the implementation of the Renters’ Rights Act 2025, the rules and expectations around applicants on benefits in England have become stringent. Today, many property owners are asking the following: Can a landlord refuse housing benefit recipients under the new statutory guidelines? And the most obvious answer is no. (gov.uk)

Landlords in England are strictly prohibited from dismissing, excluding, or discouraging any potential tenants based on the fact that they receive universal credits, housing benefits, or any other government support. 

Here, we’ll look at what these specific updates mean for your property rental business, along with the financial penalties that happen as a result of non-compliance. We’ll also take a look at how you can still manage to keep your property safe through implementing objective vetting standards. 

What Caused the Legal Shift?

Historically, landlords avoided potential tenants on benefits due to the administrative friction or the mortgage restrictions associated with this. Courts did, however, deem blanket bans discriminatory; however, the implementation of the Renters’ Rights Act made sure that any remaining loopholes were closed. 

As a landlord, you need to ensure that you don’t discriminate against potential tenants at any stage of the onboarding process. More specifically, you are not allowed to: 

• Use terms like ‘No DSS’, or ‘Working professionals only’ in any property listings. 
• Decline viewings because an applicant has mentioned that they receive support from the government. 
• Set unreasonably high rent in the hopes of filtering out those on lower incomes or benefits. 
• Stop the application process due to the rent being partially funded by the government. 

To learn more about how previous rules evolved into today’s strict requirements, visit our advice center for details on 

Visit our advice centre to learn more about how previous rules have evolved into the regulations you need to abide by today by reading our guide: Can I refuse to rent to DSS tenants?

What Happens if You Refuse Tenants on Housing Benefits?

Local authorities now have to enforce these regulations, and councils now also have the significant power to monitor all screening advertisements and practices. So, if a landlord has been found guilty of unlawful discrimination, they may face financial fines of up to £7,000. 

Repeat offenders may also be placed on the rogue landlord database, which will naturally jeopardise their ability to keep their property licences or remain active as a landlord. 

What Are the Risk Points in Tenant Vetting?

There are certain risk points in vetting tenants that you need to keep in mind during the screening process. Discrimination can often occur during the initial phone call phase or the viewing phase, rather than through written communication or notices. So, to make sure you avoid this, you need to make sure you can recognise where these risks are highest. 

One of the highest risk areas is the initial screening call. According to the 2026 legislation, lenders and insurers are required to conform to all anti-discrimination standards, too. This means that you won’t be able to use excuses like ‘my insurance won’t cover tenants on housing benefits.’ 

Read our guide on questions landlords cannot ask during screening to make sure your vetting process remains compliant. It’s always going to be in your best interest to keep an objective approach so that you can protect yourself against any potential claims. 

Using Fair, Objective Criteria

Despite all this, however, it is important to note that the 2026 regulations don’t force you to accept every applicant. You still have the right to protect your financial interests by deciding not to choose candidates who are unable to afford the rent or who have a documented history of mismanaging properties. 

As a landlord, you still have the right to select the best tenant for your rental property, as long as every applicant is measured against the same set of objective standards. 

Conducting a Proper Affordability Check

You need to make sure that when you assess the affordability of candidates, benefits from payments are treated in the same manner as employment salaries. Learn more about how the tenant screening process works under these modern transparency rules.

So, instead of focusing on the source of the income, make sure you evaluate the candidate’s total financial capability. For example:

• Combine all monthly income streams (salary, housing benefit, Universal Credit, disability allowance, etc.).
• Make sure that this total meets your threshold, for example, the income being 2.5 times what you’re charging for rent. 
• Make sure that you apply this calculation consistently across every candidate’s application to ensure complete fairness and objectivity. 

Assessing References and Rental History

As mentioned above, you are within your rights as a landlord to decline any applicants based on their prior conduct. Here are examples of legitimate grounds for rejection:

• Negative Landlord References: If a previous landlord has provided you with evidence that the candidate made late payments consistently or if they displayed antisocial behaviour. 
• Poor Credit Records: If the candidate has any active CCJs or bankruptcies, that suggest a level of financial instability.
• Verification Failures: If the candidate is unable to provide ID or proof of income during the background check. 

How to Handle a Lawful Rejection

It is important to keep in mind that there is a certain way in which you should reject a candidate’s application. There is a certain transparent protocol to follow in these types of situations, for example: 

• Document the process: Make sure that you record the specific affordability metrics that you used, providing a decision based on calculations. 
• Clear communication: Always explain to the candidate why they were unsuccessful, giving them facts. 
• Maintain consistency: Always remain consistent, never rejecting a candidate on housing benefits for the same reason you would overlook an applicant who doesn’t receive housing benefits.

Essentially, the question of whether a landlord can refuse a candidate on housing benefits will always be answered with a ‘no’. When you adopt objective vetting standards and treat all income sources equally, you’ll ensure that you remain fully compliant.

Are you looking for landlord insurance to help protect your rental property? Be sure to get in touch with our team of specialists for a quote today on 01788 818 670, or you can visit our advice centre for more information on how to manage your rental property.