Five of England’s leading letting agents are discriminating against tenants on housing benefit, according to a new report by Shelter and the National Housing Federation
In an undercover investigation carried out by Mystery Shoppers Ltd. 149 regional letting agent branches were called by researchers posing as prospective tenants. One in ten had a branch policy not to let to anyone on housing benefit, regardless of whether they could afford the rent.
Of those investigated, the report stated that Haart was the worst offender, with an outright ban on housing benefit tenants in a third of the branches called (8 out of 25). The only letting agent not to have any bans in place, was Hunters (0 out of 25).
Others named as having individual branch policies not to accept people on housing benefit were Bridgfords (two out of 25 branches visited), Dexters (two out of 25), Fox & Sons (two out of 24) and Your Move (one out of 25).
The research also exposes the wider uphill struggle faced by housing benefit tenants. Almost half (48%) of branches called said they had no suitable homes or landlords willing to let to someone on housing benefit.
Appalled by the findings, the two housing organisations have joined forces to urge letting agents and landlords to remove these bans, which they argue are both grossly unfair and likely to be unlawful.
The report says that a shortfall in social housing means that an estimated 1.64 million adults rely on housing benefit to help cover private rents.
It said the majority were women, and especially single mothers with childcare responsibilities, while people who receive disability benefits were three times more likely to need a housing benefit top-up.
Consequently, under the Equality Act 2010, letting agents who reject housing benefit tenants outright could be at risk of breaking the law because of indirect discrimination against women and people with disabilities.
Polly Neate, chief executive of Shelter, said: “This ugly undercurrent of discrimination is wreaking havoc on thousands of people’s search for a home. ‘No DSS’ policies are outdated, and an outrageous example of blatant prejudice.
“Private renting is now so expensive that many people simply can’t get by without some housing benefit – even if they’re working. At Shelter we often hear from families pushed to breaking point after battling repeated rejections because of housing benefit bans.
“Practices that blindly reject all housing benefit tenants are morally bankrupt, and because they overwhelmingly impact women and people with disabilities, could be unlawful. That’s why we’re urging all landlords and letting agents to get rid of housing benefit bans, and treat people fairly on a case by case basis.”
David Orr, chief executive of National Housing Federation said: “Many housing associations were set up in the 50s and 60s to house people who could find nowhere else to live due to blatant racism from private landlords and letting agents who told them “No Irish, no blacks, no dogs”. Letting agents should be ashamed that discrimination is still happening today in the form of an outright ban on people simply because they depend on housing benefit. We know this is purely based on prejudice.
“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, no privately rented homes will people on benefits and the chronic shortage of social housing means often none of this is available. Landlords and letting agents must see sense and assess people on a case by case basis, whilst Government urgently need to invest in the building of new social homes.”
