Government claim landlords still have a choice over who they rent to

The government has claimed there is “no one-size-fits-all” approach for landlords when determining whether a tenancy is suitable, despite measures being introduced to tackle discrimination in the PRS.

In a written parliamentary answer, Labour peer Baroness Taylor of Stevenage claimed the government have taken action to stop rental discrimination.

Under the Renters’ Rights Act, it is illegal for landlords and letting agents to discriminate against prospective tenants who receive benefits or have children, with fines of up to £7,000 for those who break the rules.

No one-size-fits-all approach

Baroness Taylor of Stevenage said: “Landlords have tools to assess applicants looking to rent or occupy a property, such as through referencing checks. The government encourages landlords to make sure that these checks are proportionate.

“However, there is no one-size-fits-all approach to determining whether any given tenancy or a licence to occupy a property will be suitable or sustainable.

“Through the Renters’ Rights Act, we have taken direct action to make clear that private landlords must stop discriminatory practices against households with children or receiving benefits in the private rented sector.

“While these measures do not apply to licenses to occupy, the Department continues to monitor trends across the private rented sector and is conducting a robust evaluation of the impact of the Renters’ Rights Act.

Landlords more cautious

As previously reported by Property118, landlords have become more cautious following the act coming into force in May and have tightened referencing checks.

Ben Grech, CEO of Reposit, said: “We know that landlords are becoming increasingly risk-averse, placing greater emphasis on financial security and tenant reliability.

“While there are early signs that arrears are beginning to stabilise, they remain slightly elevated as both landlords and tenants continue to feel the impact of sustained cost pressures.

“With the Renters’ Rights Act now in place and the abolition of Section 21 no-fault evictions, landlords are understandably becoming more cautious, given the reduced flexibility in how they manage tenancies.”