Housing Benefit Discrimination: What Landlords Need to Know From 1 May 2026

If you are a private landlord or letting agent in England, you may already know that the rules around renting to tenants who receive benefits are changing. From 1 May 2026, landlords will no longer be able to discourage, refuse, or treat someone unfairly simply because they receive benefits.

This does not mean you have to accept every person who applies for your property. You can still check whether someone can afford the rent, whether they have good references, and whether they are likely to look after the property. What you cannot do is rule someone out just because part or all of their income comes from Housing Benefit, Universal Credit or another type of benefit.

Here, we’ll go through what housing benefit discrimination means from 1 May 2026, what landlords need to avoid, and how you can keep your tenant selection process fair.

What is changing from 1 May 2026?

From 1 May 2026, new rules under the Renters’ Rights Act 2025 will make it unlawful for landlords and letting agents in England to discriminate against tenants because they receive benefits.

This applies to more than just saying “no” to an applicant. It can also include the wording you use in property adverts, how you deal with enquiries, whether someone is offered a viewing, what you tell your letting agent, and the tenancy terms you offer.

For example, phrases such as “no DSS”, “no benefits”, “working tenants only” or “professionals preferred” could all cause problems. Even if you do not mean to exclude anyone, this type of wording may discourage people who receive benefits from applying.

It is also worth remembering that the rules can apply to anyone acting on your behalf. So, if you use a letting agent, property manager, or even a family member to help with viewings, they need to understand the rules too. (Gov.UK)

What counts as housing benefit discrimination?

Housing benefit discrimination is not always as obvious as refusing an application outright.

It could include telling an agent not to send you applicants who receive benefits, refusing someone a viewing after they mention Universal Credit, or automatically rejecting an application once benefit income is disclosed. It could also include applying stricter checks to someone because they receive benefits, while being more flexible with someone in employment.

Landlords also need to be careful with tenancy terms. You should not offer worse terms simply because someone receives benefits, such as adding extra conditions or treating them as a higher risk, without looking at their individual situation.

A good way to think about it is if you can assess whether someone is suitable for the tenancy, but you should not make assumptions about them based on where their income comes from.

Can landlords still check affordability?

Yes. Landlords can and should still check whether an applicant can afford the rent.

The new rules are not designed to stop landlords from protecting their property or making sensible decisions. You can still look at income, savings, references, previous rental history, and whether a guarantor may be needed.

The important thing is that benefits should be treated as part of the applicant’s income. If someone receives Universal Credit or Housing Benefit and can show they can afford the rent, they should be assessed in the same way as any other applicant.

For example, if your usual process is to check income, request references, and carry out affordability checks, you can continue to do this. But the same process should be used for everyone. You should not make the test harder just because someone receives benefits.

If you would like more details on how to approach this, our guide to the tenant screening process explains the checks landlords may want to carry out before offering a tenancy.

What should landlords avoid in property adverts?

Your property advert is one of the first places where you need to be careful. Landlords should avoid any wording that suggests people who receive benefits are not welcome. This includes phrases like “no DSS” and “no benefits”, but also softer wording like “working households only” or “professionals only”, which may still put some applicants off.

Instead, focus the advert on the property and the tenancy itself. You can include the rent, deposit, number of bedrooms, property size, referencing requirements, and whether a guarantor may be considered.

You can also say that all applicants will be subject to standard affordability and referencing checks. This is a much fairer way to set expectations, because it makes clear that everyone will be assessed in the same way.

How should viewings and enquiries be handled?

Landlords and agents should also take care not to filter people out too early. If someone enquires about a property and says they receive benefits, that should not be used as a reason to refuse them a viewing. They should not be told there is “no point applying” just because of their benefit status.

Of course, this does not mean every person who enquires must be accepted as a tenant. If the property has already been let, if the applicant cannot meet your usual affordability checks, or if there is another fair reason why the tenancy would not be suitable, you can still make that decision.

The key is to make sure the reason is based on the tenancy, not on assumptions about benefit claimants.

Can landlords reject an applicant who receives benefits?

Yes, landlords can still reject an applicant who receives benefits, but only where there is a fair and lawful reason.

For example, you may decide not to go ahead if an applicant cannot afford the rent after a proper affordability check, has poor references, refuses to provide the information needed for standard checks, or has a relevant history of serious rent arrears or tenancy breaches.

What you should avoid is saying no simply because the applicant receives benefits. That is where landlords are most likely to run into issues.

If you do need to reject someone, keep the explanation neutral and factual. Focus on the criteria that were not met, rather than mentioning benefits. Our guide on how to reject a tenant explains how to handle this in a professional way.

Common mistakes landlords should watch out for

A common mistake is thinking that removing “no DSS” from an advert is enough. It is a good start, but landlords also need to look at the whole letting process.

For example, you could remove discriminatory wording from the advert, but still create a problem if you tell your letting agent not to arrange viewings for benefit claimants. The same applies if your referencing process automatically filters those applicants out, or if you ask unnecessary questions about why someone receives benefits.

It is also worth being careful with emails, text messages, and internal notes. A casual comment such as “I don’t want benefit tenants” could be difficult to explain if a complaint is made later.

For more information on what should be avoided during the application process, read our guide to questions landlords cannot ask during screening.

Are there any exceptions?

There may be some limited situations where a landlord believes they are restricted by a mortgage term, lease clause, insurance policy, or superior landlord agreement. If this applies, it is important to check the wording carefully and get advice where needed.

You should not assume that a restriction automatically allows you to refuse applicants who receive benefits. In most cases, the safest approach is still to avoid blanket bans and assess each applicant individually.

What happens if a landlord is reported?

If a landlord or letting agent is reported for housing benefit discrimination, the local authority may investigate. If they find that the rules have been broken, enforcement action could follow.

This could include a financial penalty, as well as reputational damage and further scrutiny of your letting practices. If you use an agent, you may also need to show that you did not ask them to act in a discriminatory way.

Good record-keeping can make a big difference here. Keep copies of your adverts, enquiry responses, affordability criteria, referencing results, and notes explaining why an applicant was accepted or rejected. This can help show that your decision was based on fair rental criteria rather than benefit status.

The new rules do not stop landlords from choosing a reliable tenant. You can still use affordability checks, references, and previous tenancy history to make an informed decision.

What you cannot do from 1 May 2026 is discourage, filter out, or refuse someone simply because they receive benefits. You also need to make sure that anyone acting on your behalf follows the same approach.

So, when it comes to housing benefit discrimination, the best approach is to keep things fair, consistent, and evidence-based. Treat every applicant as an individual, avoid assumptions, and make sure your decisions are based on whether they can meet the tenancy requirements.

If you’re looking for landlord insurance to help protect your rental property, make sure you 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.