Landlords who refuse to rent to tenants receiving benefits or those with children could face legal consequences from May 2026, as new guidance comes into force alongside the Renters Rights Act.
The updated rules aim to tackle discrimination in the rental sector and will apply across England and Scotland from 1 May, followed by Wales from 1 June 2026. In Scotland, breaches could result in fines of up to £1,000 for landlords and letting agents who fail to comply.
Clear Ban on Discriminatory Practices
The new legislation prohibits both obvious and more subtle forms of discrimination throughout the letting process. This includes banning phrases such as “No DSS” in property listings, as well as indirect practices like setting stricter financial requirements for benefit claimants compared to other applicants.
These protections apply at every stage, from the initial enquiry and property viewings through to signing a tenancy agreement. In Scotland, the rules will also apply to existing tenancies, not just new ones.
Landlords Can Still Assess Suitability
While the changes introduce stricter rules, landlords still have the right to choose tenants. However, decisions must be based on affordability and suitability rather than whether someone receives benefits or has children.
Standard referencing checks remain acceptable, and landlords can still request guarantors or rent in advance once terms are agreed. The key requirement is that these conditions are applied consistently to all applicants.
Limited Exceptions
There are some exceptions within the rules. For example, refusing tenants with children may be allowed if it is necessary to avoid overcrowding under legal housing standards. However, there are no similar exemptions for applicants receiving benefits.
Importantly, any clauses in mortgages, insurance policies, or agreements that restrict letting to certain groups will no longer be enforceable under the new framework. Existing insurance policies may be temporarily unaffected until they are renewed.
Enforcement and Compliance
Local authorities will be responsible for enforcing the rules in Scotland, with further legal action handled by relevant authorities where necessary.
Landlords are being encouraged to prepare ahead of the changes by reviewing their current processes. This includes updating property listings, ensuring fair and consistent referencing checks, and making sure staff understand the new requirements.
What This Means Moving Forward
Ultimately, the focus of the new rules is to ensure fairness across the rental market. Landlords must base decisions on whether a tenant can afford the rent and whether the property is suitable for them — not on their personal circumstances or source of income.
With enforcement beginning in May, landlords who fail to adapt could face financial penalties and legal risks, making early preparation essential.
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