Avoid discrimination pitfalls when selecting an applicant
Did you know it's against the law to refuse an applicant who has a child or who is on benefits?
The government defines rental discrimination as unfair treatment of people with children or who receive benefits. The new rules apply to all assured and regulated tenancies from 1 May 2026, regardless of when the agreement was made.
- 5 May 2026
The government defines rental discrimination as unfair treatment of people with children or who receive benefits. The new rules apply to all assured and regulated tenancies from 1 May 2026, regardless of when the agreement was made.
This guidance explains the government’s new rules and what they mean for you.
- From 1 May 2026, any new or renewed insurance contracts cannot include discriminatory terms. These terms can no longer be used to justify treating tenants with children or those receiving benefits unfairly.
- Landlords can take a tenant’s income into account when considering if the rent is affordable. They are not liable for a breach if a set income requirement is not met, regardless of whether the person has children or receives benefits.
- Anyone found guilty of discrimination can face serious penalties. Local authorities may issue a civil penalty of up to £7,000. For repeat breaches, they can add another penalty of up to £7,000 on top of the original fine.
- When deciding between multiple prospective tenants who have met the income requirements, landlords should not consider whether they receive benefits or have children in reaching their decision.
In summary, landlords should set the same income requirement for all applicants and treat all income types equally. Prospective tenants must show they meet this requirement, and landlords should consider all forms of income. Landlords should not unreasonably reject any proof of income a tenant provides, such as a bank statement, benefit letter, or pay slip.
If you work with a property management company, are you confident they are ahead of every change? If you manage your own property, do you understand the risks of mistakes? We have been letting and managing properties since the 1960s, and we stay up to date on all the changes that could impact our clients this year. We are ready to help.
Our reputation as a property management company stretches from Cambridge city centre to the surrounding areas, with branches in Longstanton, St Neots, Ware, and Royston. We also serve the prime Hertfordshire area and extend our services into London. We manage a range of properties, including HMO rooms, houses, flats, and unique rentals with high-quality finishes.
