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Letting agents refusing benefit claimants, investigation reveals
Letting agents are routinely refusing to let private rented sector homes to tenants on housing benefit even if they have a perfect record of rental payments, an investigation has revealed.
That finding has come from the National Housing Federation and Shelter after a joint ‘mystery shopper’ exercise that targeted 149 branches of letting agents.
Researchers posing as prospective tenants found 10% had a branch policy not to let to anyone on housing benefit, regardless of whether they could afford the rent, while 48% said they had no suitable homes or landlords willing to let to someone on housing benefit.
The two organisations said this might amount to unlawful indirect discrimination as the majority of the 1.64 million adults who rely on housing benefit are female, and people who receive disability benefits are three times more likely than others to need a housing benefit top-up.
Polly Neate, chief executive of Shelter, said: “This ugly undercurrent of discrimination is wreaking havoc on hundreds of thousands of people’s lives. ‘No DSS’ is an outdated and outrageous example of blatant prejudice.”
David Orr, chief executive of the National Housing Federation, said: “The homeless shelters and charities housing vulnerable people that we represent, find it increasingly impossible to help their residents move in to their own independent home.
“Often, nowhere in the private rented sector will take someone on benefits and the chronic shortage of social housing means often none of this is available.”
According to the survey the worst results came from Haart, with an outright ban on housing benefit tenants in eight out of 25 branches called. Only Hunters had no bans in place.
A spokesperson for Haart said: “This research has brought to light that some of our branches are misinformed and we are working to ensure that this policy is being followed across our network. We are sorry for any occasion where this has not been the case.
They added: “It is not our policy to refuse housing benefit tenants – anyone who passes referencing checks is able to rent properties listed with our branches. We do regularly arrange tenancies for those claiming housing benefits and currently have 112 tenancies where this is the case.
“In certain instances, landlords may not be able to let properties to housing benefit tenants for a variety of reasons including lending and insurance criteria. Government policy on housing benefit, with payments made in arrears, has also made it more difficult for landlords who require rents to be paid in advance.”
Haart said that where landlords did not let to claimants it would direct them to available properties, or contact them once these became available.
