7 surprising ways you might discriminate against tenants receiving benefits

The Renters’ Rights Act 2025 has given tenants new powers and protection. One of the most positive elements is the anti-discrimination law that took effect on 1st May 2026.

Discrimination against two groups has been formally added: tenants renting with children and tenants receiving benefits. This article will concentrate on the latter.

While there are some obvious ways landlords can avoid discriminating against those receiving benefits, there are some subtle nuances. We explain how landlords can stay within the law.

1. Your standard contract excludes tenants receiving benefits 

It doesn’t matter what wording appears in an old tenancy agreement, even if it’s signed and still held by a letting agent. The Renters’ Rights Act 2025 automatically turned all AST contracts into APTs on 1st May 2026. The new law also rendered all ‘no DSS’ and ‘no benefits’ wording null and void, meaning it is no longer enforceable.

2. You include the phrase ‘professionals only’ on adverts

The ban on using ‘no DSS’ and ‘no benefits’ is very clear to understand but a landlord can’t use less aggressive phrases to filter tenants. More subtle terms, such as ‘professionals only’ or ‘full time workers preferred’, are also examples of benefit discrimination.

3. You use the wrong referencing agency

If a landlord uses a tenant referencing agency that ignores an applicant’s benefit income, it can be classed as discrimination. All income, whether it is earned or takes the form of benefits, should be taken into account when assessing whether  a tenant can afford the rent.

4. You insist a tenant on benefits supplies a guarantor

A landlord can’t set one rule for benefit claimants and another for other applicants. For example, a landlord can’t insist all tenants on benefits provide a guarantor – even if their income meets the rent advertised – while a guarantor is not mandatory for tenants who don’t receive benefits.

5. You’re in Scotland or Wales and assume you’re not included

The anti-discrimination law is the only part of the Renters’ Rights Act 2025 that applies in Scotland and Wales, as well as England. Tenants across Great Britain enjoy the same level of protection from benefit discrimination, although the fines for breaches and rules vary slightly from country-to-country.

6. You use a condition attached to your mortgage

Many buy-to-let lenders used their terms and conditions to ban landlords from renting out their property to tenants on benefits. This used to be a valid reason for declining renters who receive income such as Universal Credit or Job Seeker’s Allowance.

The anti-discrimination law contained within the Renters’ Rights Act 2025 automatically invalidated this condition on 1st May 2026. As such, landlords can’t use a discriminatory term attached to their buy-to-let mortgage to turn down tenants on benefits. 

7. You assume your insurance policy covers you

Similarly to mortgage lenders, some landlord insurance policy terms and conditions also ban a landlord from renting to a tenant on benefits. If this is an option you are using, you need to revise your stance.

This clause is only enforceable until the policy expires or at the renewal anniversary. At both times, the new anti-discrimination law invalidates any blanket ban on renting to tenants who receive benefits.

We’re here to support landlords, helping them implement the Renters’ Rights Act 2025 and stay compliant with property law. Please talk to the team if you need tenant find or property management services.