RLA call on banks to end Benefits discriminationMake Text Bigger
The RLA is calling on the majority of Buy to Let lenders to stop discriminating against lending to Landlords that let to benefits tenants in their criteria. They are citing and example where a landlord had their Buy to Let mortgage called in, because it was discovered they were letting to a benefits tenant. Click here to see the full article.
RLA research indicates that two thirds of BTL lenders representing 90% of the market do not allow DSS tenants in their criteria.
The RLA have written to, John Glen MP, Treasury Minister responsible for banking asking for the following:
- The Government to use the influence it has in those banks in which it currently has shares to end such discriminatory practices.
- The Financial Conduct Authority (FCA), working with the Bank of England, to undertake a full investigation into the extent of this problem and prepare plans to end it. The RLA believes such practices breach a number of principles within the FCA’s ‘Treating Customers Fairly’ agenda.
- The Equalities and Human Rights Commission to undertake a review of whether such practices breach equalities law.
Policy Director for the RLA, David Smith, commented: “With growing numbers of benefit claimants now relying on the private rented sector, it is shameful that many lenders are preventing landlords renting property to some of the most vulnerable in society with little or no justification.
“The banks have had long enough to get their house in order. It is now time to take firm action to stop such unjust practices.”
This is after Letting agents and landlords who advertise that they do not accept benefits tenants have been threatened with legal action on the grounds of discrimination by the National Housing Federation and Shelter (see articles below).
However, could this also be inadvertently throwing landlords under the bus that turn down applications for various reasons to benefits tenants?
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