Children and Tenants Receiving Benefits

In 2020-21, 30% of privately rented homes were let to tenants with children. However, many UK landlords categorically do not rent to tenants with children or those who receive welfare payments. Sometimes the ban is overt, other times landlords discourage or otherwise prevent these tenants from renting their properties.

Although there is nothing in current UK law to stop these blanket bans outright, the Equality Act (2010) is often cited in such cases. The Equality Act (2010) makes it illegal to discriminate on the grounds of sex, sexual orientation, race, religion or disability. Although landlords can currently issue ‘blanket bans’, if their ban makes it difficult for a particular type of tenant to rent, this could be seen as indirect discrimination. For example, a blanket ban on ‘benefits’ (‘No DSS’), or children, might indirectly discriminate against women, who are statistically more likely to have children and receive benefits. In February 2022, The Home Office issued guidance for landlords and Letting Agents to avoid unlawful discrimination when conducting ‘Right to Rent’ checks.

Landlords argue they have a right to refuse tenants based on the suitability of the property. A city-centre studio apartment with no space nearby for children to play, for example, might be wholly unsuitable for tenants with children. Similarly, a landlord with a HMO (House of Multiple Occupancy) might argue that the property is unsuitable for a tenant who intends to have their children to stay alternate weekends.

Blanket bans on children and welfare: what’s changing?

It will be illegal for landlords to issue blanket bans on tenants with children or tenants who receive benefits. This undoubtedly levels the playing field for a large proportion of private renters who were previously struggling to find suitable homes. The system will be fairer, with less overt discrimination. This is a big step towards ‘levelling up’.

Some commentators argue the change will make some landlords less willing to rent out their properties, due to the perceived ‘risks’ of having tenants receiving benefits and increased wear-and-tear associated with children. It is likely that landlords who have bought to let will have little choice but to let and accept any associated ‘risks’ (real or perceived), with the only other option being selling up.

Pets

Similarly, many landlords issue blanket bans on pets, and this is at odds with the growing numbers of pet-owners in the UK following the Covid-19 pandemic. Although the Consumer Rights Act (2015) offers some protection for tenants, more often than not ‘no pets’ lettings go unchecked.

In 2020-21, only 7% of private rented properties were ‘pet-friendly’. This is squarely at odds with the fact that the UK in a nation of pet-lovers, as 62% of UK households now have at least one pet according to the Pet Food Manufacturers Association.

Blanket bans on pets: what’s changing?

All tenants will be able to request permission to have a pet. The landlord will have to respond in writing within 28 days, and will have to provide a reason for refusing a request. Tenants will be able to appeal a refusal (presumably through the new Ombudsman,  see below, but the details are as yet unclear).

The government are also proposing changes to the Tenant Fees Act (2019) to allow landlords to require their tenants to hold Pet Insurance. This will hopefully assuage any fears landlords may have about being left out of pocket after repairing damage caused by pets, and will encourage more landlords to approve pet requests.

Decent Homes Standard

In 2004, the government introduced the Decent Homes Standard to ensure Social Housing was in a ‘reasonable state of repair’, warm, dry and safe.

Assessment for the Decent Homes Standard is based on the Health and Safety Rating System (HHSRS), whereby a score is awarded to a property according to the level of 29 separate hazards. These hazards include asbestos, carbon monoxide, pests, electrical hazards and fall risks, amongst others.

A ‘Harm Outcome’ is assigned to each hazard, classed  between 1 and 4 according to severity:

• Class 1 - Extreme
• Class 2 - Severe
• Class 3 - Serious
• Class 4 - Moderate

An assessment score greater than 1000 means the home is Non-Decent; if serious hazards are found, the landlord should take remedial action as soon as possible, but the landlord can opt to wait until the property is next vacant, or if the tenant does not want the work carried out during their tenancy (although the landlord must make them aware of the hazard and risks).

Following assessment, the local authority can:

• issue an Improvement Notice for remedial work within a timeframe
• issue a Prohibition Notice, prohibiting use of the property (or areas of it)
• issue a Hazard Awareness Notice, an advisory detailing the hazard and steps to mitigate this
• in severe cases, issue a Demolition Order

Decent Homes Standard: What’s Changing?

The Decent Homes Standard will soon be applied to private rented properties, as well as Social Housing. This means private rented accommodation will have to meet the criteria for a Decent Home (i.e., warm, safe and dry, free of serious hazards). The government said it will also allow Rent Repayment Orders to be applied to Non-Decent Homes. Housing charity Shelter welcome this change, as landlords could face severe financial penalties if they rent properties that fall below these standards.

The Decent Homes Standard itself is undergoing a review, pending completion in October 2022. This perhaps coincides with the changes afoot to extend its application to the private sector.

New: Ombudsman

Currently, the Housing Ombudsman Service (HOS) works to resolve disputes between landlords and tenants without going to court. Membership with HOS is compulsory for Housing Associations and Local Authorities, but not private landlords.

One of the headline changes for landlords is that the government will establish a Private Renters’ Ombudsman for the private sector in England. Membership will be mandatory, regardless of whether the landlord uses a letting agent or not. The ombudsman will be able to receive complaints, and landlords will be obliged to act.

One of the key ideas here is that establishing the ombudsman will reduce the volume of repossession orders and disputes going through court, a protracted and costly process that is usually detrimental to both landlords and tenants. 

The ombudsman will also be able to issue compensation of up to £25,000 and can force landlords to repay rent where the property was below standard or in breach of the tenancy agreement. The government has warned that if landlords persistently fail to comply with the requirements set out by the Ombudsman, they could face a Banning Order.

New: Property Portal

Currently, landlords must issue the government’s How to Rent document to tenants at the start of their tenancy. Under the new legislation, the government will create a new Property Portal for rented homes. This will be a single source of information for tenants, landlords and local authorities, and will give these parties access to the information they require in relation to a specific rented property.

This information would include: landlords’ identity and compliance records, landlords’ obligations with regards to the property, and data on properties for local authority use. Not all information will be available to all parties involved, to adhere to privacy laws.

It is thought this ‘one-stop-shop’ will make enable tenants to make informed decisions about which property to rent (and which landlord to rent from). Shelter say the Portal will “professionalise landlords and drive up standards”.

Summary

In terms of levelling up, making blanket bans on tenants receiving benefits or tenants with children illegal goes some way to ensure the private rental sector is fair to all. Whilst it would be idealistic to say will remove discrimination in the private rental sector, it is a big step towards tackling the problem. There is a worry amongst some landlords that they will be forced to take increased risks in letting their properties if they cannot issue blanket bans, but time should tell that the perceived ‘risk’ is worth the reward. 

An end to blanket bans on pets brings the private rented sector in line with UK society and culture.

The introduction of the new Property Portal and Private Renters’ Ombudsman, as well as the extension of the Decent Homes Standard to private rented properties, will help crack down on rogue landlords and streamline tenant-landlord disputes, hopefully avoiding protracted and costly court proceedings.