Preventing rental discrimination

This guidance is based on the wording of the Bill currently being considered in the House of Lords and may be subject to change. Check back regularly for further updates.

The Renters' Rights Bill is expected to come into force later this year, bringing with it a host of new rules that could change the way you operate your rental business.

This includes new rules around preventing discrimination against families and tenants in receipt of benefits.

In practice, landlords don’t generally discriminate against either of these groups. However, the new rules will mean you should formalise your processes and make sure you can evidence that your approach to choosing a tenant is not discriminatory.

This guide is intended to prepare you for the changes so you can have peace of mind when choosing your next tenant.

The Equality Act 2010 prevents landlords and agents from discriminating directly or indirectly based on the following protected characteristics:

• Disability
• Gender reassignment
• Pregnancy and maternity
• Race
• Religion or belief
• Sex
• Sexual orientation

The two other protected characteristics, age and marriage/civil partnership, are not protected in housing.

Who enforces this legislation?

Generally, anyone who is the victim of discrimination can apply to the court to enforce their rights. This means that tenants will typically have to apply to court themselves.

Direct vs indirect discrimination

Direct discrimination occurs in relatively straightforward cases where someone deliberately treats another person differently because of one or more of these characteristics. For example, refusing to let a property to someone because of the colour of their skin would be an example of direct discrimination.

On the other hand, indirect discrimination occurs when a policy, practice, or rule that applies to everyone disproportionately affects people with a particular protected characteristic. This can be unintentional and much harder to identify.

Reflecting these difficulties, where indirect discrimination does occur, it is a defence if the perpetrator can establish that the discriminatory act was a proportionate means of achieving a legitimate aim.

For example, if a tenant's disability is leading to antisocial behaviour, evicting them may be considered indirect discrimination. At the same time, though, ending the antisocial behaviour is a completely legitimate aim.

In this example, the landlord may serve notice. However, they should also be prepared to provide evidence that the eviction is proportionate and that other measures were attempted first.

In addition to the existing rules around discrimination, the Bill bans discrimination against –

• Tenants with children under the age of 18; and
• Tenants in receipt of benefits.

It does this by explicitly banning certain behaviours and allowing local authorities to issue civil penalties if they believe the landlord (or anyone acting on their behalf) probably discriminated against the prospective tenant.

It also removes discriminatory terms in mortgages, tenancies, and insurance products that might prevent a landlord or agent from letting to one of these groups.

Local authorities are responsible for enforcing this legislation and may issue penalties of up to £7,000 per offence. They may then keep any fines raised for further enforcement action in the private rented sector.

The landlord may receive a further civil penalty if the behaviour continues for more than 28 days after a civil penalty. This can continue until the discriminatory behaviour stops.