Can I refuse tenants who receive benefits?

While most of the Renters’ Rights Act 2025 applies just in England, there is one aspect that is now in force across Great Britain: anti-discrimination. 

Landlords, or anyone working on their behalf, have to be more inclusive when it comes to considering tenant applications. The anti-discrimination law covers two groups: renters with children and renters who receive benefits. In this article, we’re going to explain more about the latter.

What benefits might a tenant receive?

A tenant might be in receipt of the following:

• Universal Credit

• Jobseeker's Allowance

• Employment and Support Allowance

• Income Support

• Housing Benefit

• State Pension or Pension Credit

• Council Tax Support

• Tax Credits

• Child Benefit

• Guardian's Allowance

• Carer’s Allowance

Examples of benefit discrimination 

If you’re wondering what discrimination against a tenant may look like, here’s a list of action that could be perceived as discrimination:

• Using ‘no DSS’ or ‘no benefits’ in property advertising and on listings

• not including benefit income when establishing whether the tenant can afford the rent 

• preventing a tenant who receives benefits from enquiring about a property

• refusing a tenant who receives benefits from booking a viewing

• telling a tenant who receives benefits that a property is taken, even if it continues to be advertised

• withholding information about the property from a tenant who receives benefits 

• preventing a tenant who receives benefits from entering into a tenancy contract

• telling a tenant who receives benefits the landlord’s mortgage terms prohibit them from renting someone on benefits

• serving notice if a tenant starts receiving benefits during occupation

• falsifying a claim that the landlord’s insurance contract prohibits renting to a tenant who receives benefits

Amending contracts & informing tenants

The Renters’ Rights Act 2025 automatically superseded any other legislation and tenancy contracts in place. As such, clauses in agreements that specified a landlord would refuse a tenant in receipt of benefits became null and void on 1st May 2026 in England and Scotland, and on 1st June 2026 in Wales.

Landlords in England had to communicate all changes, including anti-discrimination measures, by issuing tenants with a Government-produced Renters' Rights Act Information Sheet. This had to be sent by 31st May 2026. 

Landlords with buy-to-lets in Wales had to issue new standard occupation contracts that included an anti-discrimination section from 1st June 2026. Existing standard occupation contracts needed to be updated with the new anti-discrimination law, or the tenant sent a statement about the changes, by 14th June 2026.

Although landlords in Scotland didn’t have to communicate any changes to their tenants, there is a new Scottish model tenancy agreement landlords are urged to use.

Is it ever possible to refuse a tenant in receipt of benefits?

The new legislation is designed to create a level playing field for all renters looking for a home, especially those who can prove good credentials and pay the rent on time. 

Landlords, however, retain the right to refuse any applicant, whether they receive benefits or not. This decision must be informed by the referencing process. It is acceptable for a landlord to decline an application if the tenant’s income can’t cover the rent, whether their financial contribution is made up in part, or wholly, by benefits. 

Anti-discrimination breaches

Discriminating against tenants because they receive benefits is illegal – and punishable. Local authorities have power to take action and fine landlords. These figures are illustrative and can increase if matters escalate or there are repeat offences:

• Breaching anti-discrimination laws in England carries a financial penalty of up to £7,000 per offence, including not serving the Renters' Rights Act Information Sheet on time.

• Breaching anti-discrimination laws in Scotland carries a level 3 financial penalty on the standard scale (currently £1,000). 

• Breaching anti-discrimination laws in Wales carries a financial penalty of up to £7,000 per offence, and tenants may qualify for compensation if they were not informed of the anti-discrimination rules by 14th June 2026.

Mitigating risk with professional management

We’ve read the Renters’ Rights Act 2025 inside out, especially the anti-discrimination legislation. Our focus is on securing the most reliable tenants for our landlords while staying within the law. If you would like to hand compliance over to the professionals, contact us today.