A disabled mum-of-two emerged
victorious from York County Court earlier this month after winning a case that
sent ripples through the lettings industry.
The woman, who was on housing
benefit, had been blocked from renting a property by a blanket “no DSS”
lettings policy.
The court heard the woman, who had a
part-time job, good references from two previous landlords and a reliable
guarantor, had been treated unfairly. The judge agreed and awarded her £3,500
in damages and costs.
Legal implications
The ruling is significant because,
despite lots of rumblings over “no DSS”, it is the first time a judge has ruled
it is unlawful and discriminatory.
Homeless charity Shelter says the
case sends a clear warning to landlords “that they risk legal action if they
continue to bar housing benefit tenants from renting”.
Now some legal eagles have noted that
as the ruling was made in a county court, it is not binding on other courts.
But I think this is splitting hairs.
Even before the York court case, some
tenants had won out-of-court settlements after challenging adverts which openly
banned benefit claimants.
The direction of traffic is clear:
blanket bans that take no account of an individual’s circumstances are
increasingly risky. A one-size-fits-all approach can leave a landlord exposed
to the threat of legal action and one big headache.
Push to end “no DSS”
The term “no DSS” has been used in
property listings for years to make it clear benefit recipients will not be
considered for a tenancy.
It’s loathed by welfare charities who
argue it should be a relic of the past. (History buffs take note the DSS – the
Department for Social Security – ceased to exist back in 2001).
There are many reasons why
historically some landlords have not rented to people on benefits. One is that
some mortgages and insurance policies were invalidated if the tenant was on
benefits.
But things have changed. Many lenders, including the Co-operative, Nationwide and NatWest, have loosened buy-to-let mortgage restrictions that relate to benefits tenants. And the phrase “no DSS” has been banned by property portals Zoopla and Rightmove.
Covid-19 Benefits
During this pandemic I’m sure we
would all agree that the majority of ‘employed’ people in the private sector across
the country are receiving some form of benefit via a government scheme designed
to protect their own jobs and their employers.
Both tenants and landlords have also
been protected as a result of the government introducing rent and mortgage
repayment holidays.
I suppose you could say 'most people are on benefits'.
Finding the right tenant for your
property
Understandably, a landlord wants to
find a reliable and respectful tenant.
But slapping “no DSS” at the end of a
property listing can be like hitting a walnut with a sledgehammer.
Who – other than a lawyer, of course
– wants to get caught up in a legal dispute over the fine-print of the Equality
Act 2010?
So, please remember if you are a landlord looking for tenants PLEASE stop using the term ‘no DSS’. It is illegal and unwanted.
Landlords and lettings agents can still conduct the usual referencing and credit checks on potential tenants. There are many people receiving benefits that still have a good credit rating.
Thanks
for reading
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buyers, landlords and tenants
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