Understanding housing discrimination: A guide for landlords and agents

Originally published: August 2025

The spectre of discrimination still haunts the Private Rented Sector (PRS). 

Data from the housing charity Shelter says that 110,000 families have missed out on a home they wanted in the last 6 years because they had children.

The Renters' Rights Act rightly aims to close the gaps in existing legislation by making discrimination against families and tenants on universal credit and housing benefits illegal. 

As tenants’ rights move firmly up the legislative agenda, with measures such as Awaab’s Law and the upcoming ban on rental bidding wars, transparency and fairness are becoming central to how the rental market operates.

If a tenant can prove they’ve been discriminated against in a civil proceeding, their landlord and letting agent can be made to pay compensation awards called Vento bands. These awards can range anywhere from £1,200 to £60,700 (we’ll go more in-depth on Vento bands later).

While services like Goodlord help you avoid paying out compensation by keeping your processes compliant and fair, you should still understand discrimination and be mindful of it in your practice. Luckily, this blog is here to help.

• What counts as housing discrimination in the UK?
• Does housing discrimination work differently in social rentals vs private rentals 
• How does the Renters' Rights Act change housing discrimination
• Impacts on landlords and letting agents
• What are the legal consequences for non-compliance?
• What practical steps can you take to avoid rental discrimination?
• How does Goodlord help landlords and agents stay compliant?
• Conclusion
• FAQs

What counts as housing discrimination in the UK? 

The Equality Act 2010 is a vital piece of legislation that makes it unlawful for a person letting out or managing a property to discriminate against individuals or groups with a protected characteristic.

Under the current law, these characteristics are:

• Disability (including mental health and physical disabilities)
• Race
• Religion or belief
• Sex
• Sexual orientation
• Gender reassignment
• Pregnancy and maternity

The Renters’ Rights Act will expand this list to include tenants with children and those on benefits or housing allowances.

It’s also worth noting that some protected characteristics don’t apply when we’re talking about discrimination in housing law. These are age, marriage, and civil partnerships.

Different types of unlawful housing discrimination

There are several different types of discrimination that you need to be mindful of. Each aims to define a different way in which an individual or a group could be discriminated against.

Direct discrimination

Direct discrimination occurs when a landlord, letting agent, or housing association has discriminatory policies based on a protected characteristic. An example of this would be a private landlord who avoids renting to a particular demographic based on racial discrimination.

Indirect discrimination

Indirect discrimination is a complex issue to solve. It’s where a seemingly neutral process or policy inadvertently disadvantages a person or group with a protected characteristic. This is one of the most insidious forms of discrimination, as the perpetrators may be completely innocent of any ill intent.

Harassment

In the Equality Act 2010, harassment is rather wordily defined as “unwanted conduct related to a relevant protected characteristic, which has the purpose or effect of violating an individual’s dignity or creating an intimidating, hostile, degrading, humiliating or offensive environment for that individual."

In layman’s terms, harassment is when someone treats another person with a protected characteristic in a way that feels degrading or insulting. An example of this could be an estate agent being frequently condescending to a potential tenant based on their race or refusing reasonable adjustments for a person’s physical disability.

Victimisation

When an individual faces discrimination based on the belief or the actual fact that they carried out a “protected act”, this is called victimisation. 

A protected act could be:

• Making a complaint or claim under the Equality Act 2010
• Giving evidence in support of another person’s claim
• Alleging (even mistakenly) in good faith that someone has breached the Act
• Doing anything else related to the Equality Act, including raising concerns about equality or supporting someone making a complaint 

Interestingly, a person does not need to have their own protected characteristic to be victimised.

Does housing discrimination work differently in social rentals vs private rentals?

The Equality Act 2010 (and the upcoming expansion under the Renters’ Rights Act) is intended to apply to the entire housing market, including both private rentals and social housing. Despite this, the way discrimination manifests and is addressed in each sector can differ significantly.

In social housing, concerns about discrimination often arise from local authorities' allocation practices and perceptions of bias. In the private rented sector, discrimination is generally seen in blanket bans on families with children or refusals to rent to tenants on benefits (DSS discrimination).

Social housing

Allocation bias and perceived biases

In the UK, social housing is allocated based on priority need and local eligibility criteria. While these processes are intended to distribute housing in a fair, unbiased way, tenants often see these policies as unfair, uncaring, and opaque.

Under the Equality Act, public bodies have a duty to comply with all regulations in their housing application assessment and in how they allocate properties. This includes avoiding direct and indirect discrimination through their eligibility rules, prioritisation systems, and all communications with applicants.

Efforts to create fairness through local authority oversight

Most social housing is allocated through choice-based lettings schemes that are overseen by local councils. In theory, schemes like these give potential tenants more choice in where they live.

In recent years, some public authorities, such as Westminster Council, have sought to foster a culture of transparency in their housing allocation schemes. They do this through several methods:

• Publication of their allocation polices
• Regular equality impact assessments
• Independent panel reviews for  complaints and disrepair claims

Tenants waiting for social housing are often stressed, busy, and tired. Processes like these help build trust in the community while ensuring that social housing allocations aren’t marred by direct discrimination.

Private rentals

The private rented sector has historically operated with fewer equality safeguards in place than social housing. Common practices like listing a property with “No DSS” rules and discrimination against families have led to issues like disability discrimination, difficulties for benefit claimants, and prejudice against tenants without British citizenship.

Market pressure has only intensified the impact. According to The State of Lettings Industry report, nearly half of tenants (48%) say they now find it difficult to secure a property. In response, many are going to unusual lengths just to be considered, with two in five renters paying more than a month’s rent upfront to beat the competition. Rent in advance is another practice that the Renters’ Rights Act abolishes. 

In a market this stretched, decisions made under pressure can easily slip from commercial judgement into unfair or exclusionary practice, particularly when assumptions are made about income source or family circumstances rather than individual suitability.

This sort of discrimination has no place in a modern society, and the government quite rightly aims to close the gaps in housing discrimination laws with the Renters’ Rights Act.

Legal rulings against discriminatory housing policies

Individuals and charities like Shelter have brought unfair housing policies into the courtroom.

In 2019, a Shelter support case against "no DSS” practices established that blanket bans on benefit claimants likely constituted indirect discrimination against women and those on disability benefits. 

In 2021, a York County Court ruled in favour of a tenant challenging a letting agent’s refusal to consider tenants on Universal Credit, calling it “unlawful discrimination”.

These cases and the changes to the law under the Renters’ Rights Act show a renewed focus on tenant rights.

How does the Renters’ Rights Act change housing discrimination?

The Renter’s Rights Act is the most transformative piece of housing legislation in decades. It represents a comprehensive shake-up of the industry that will strengthen tenant rights across the board. 

As we’ve mentioned above, one of the Act’s central aims is to protect tenants who have been historically excluded from the rental market. Below, we outline the key changes that directly affect housing discrimination and what they mean for landlords and letting agents.

Key changes in the Renters’ Rights Act

1 - Explicit protections for families and tenants on benefits 

Under the new rules, landlords and letting agents will no longer be allowed to discriminate against prospective tenants simply because they have children or receive benefits such as Universal Credit or housing allowances.

This includes overt practices like advertising properties with “No DSS” restrictions, as well as indirect actions that make it harder for certain tenants to access housing. 

Crucially, the Act goes beyond banning discriminatory adverts. It also targets behaviours that prevent someone from entering a tenancy or reduce their chances of securing a property because of their family status or income source.

These prohibited behaviours include: 

• Withholding information about a property or its availability 
• Refusing or discouraging viewings
• Applying blanket policies that exclude families or benefit recipients
• Refusing to grant a tenancy on the basis that a tenant has children or receives benefits 

While landlords and agents will still have the final decision on who they rent to, those decisions must be based on affordability and suitability, not protected circumstances.

2 - Abolition of Section 21 ”no-fault” evictions 

Another key provision of the Act is the abolition of Section 21 “no-fault” evictions. Landlords will no longer be able to regain possession of a property without providing a valid reason.

Previously, tenants who experienced discrimination may have been reluctant to raise concerns for fear of being retaliated against and made homeless by unscrupulous landlords. Abolishing Section 21 evictions will strengthen tenant security and ensure that tenants feel comfortable asserting their rights.

3 - More structured tenancy processes 

The Act calls for greater consistency in how tenancies are processed by letting agents and landlords. This includes more precise documentation, fairer notice periods (at least four months), and transparent communications. Formalising the process will minimise misunderstanding and eliminate the chance of indirect discrimination.

When do the new discrimination rules come into force?

The new rental discrimination protections under the Renters' Rights Act will be introduced as part of Phase 1 of the Renters’ Rights Act implementation plan, with the law coming into effect from May 1, 2026. 

From this date, it will be illegal for landlords or letting agents to take any action that disadvantages a prospective tenant because they have children or receive benefits.

This applies to the entire rental journey, from advertising and enquiries to viewings, referencing, and tenancy decisions.

Impacts on landlords and letting agents

The vast majority of landlords and letting agents are positive forces in the social and private rental markets. No one wants to discriminate against prospective tenants, and most are focused on creating long-term, sustainable tenancies for everyone involved.

As the Renters’ Rights Act comes into force, the context in which rental decisions are made is changing. Processes that were once informal are now subject to greater transparency, documentation, and challenge, particularly where prospective tenants feel they have been treated unfairly. 

For some landlords, this shift is already influencing longer-term decisions. According to The State of the Lettings Industry report, four out of five landlords (80%) who are reducing their portfolios cite the Renters’ Rights Act as a key factor. 

Against this backdrop, landlords and agents will need to ensure their processes are not just well-intentioned but demonstrably fair and compliant. Here’s what we see as the main impacts:

• Transparent selection processes - Common industry practices such as "No DSS” clauses will be outlawed. Agents and landlords will need to create an objective, documented selection process free from any perceived biases.
• More thoughtful vetting - Flexible tenancies and limited grounds for evictions mean that landlords will need to approach tenancy vetting much more carefully. Tenants will need to be chosen based on solid facts rather than informal assumptions.
• Objection grounds for refusal or evictions - If a landlord wants to pursue a refusal or an eviction, they will need to present clear, non-biased evidence that takes protected characteristics into account. Think of things like anti-social behaviour, property damage, or rent arrears.

What are the legal consequences for non-compliance?

While there are substantial financial punishments for breaching the Equality Act 2010, the Renters’ Rights Act raises the bar for how rental decisions are made and enforced. For landlords and letting agents, non-compliance carries both legal consequences and lasting reputational risk.

Penalties under the Equality Act 2010

Sections 13, 19, 20, 21, and 35 of the Act say that housing providers must not discriminate directly or indirectly, harass, victimise, or fail to make reasonable adjustments for protected characteristics.

When discrimination occurs, the affected party can bring a civil claim against their housing provider under Section 119 of the Bill. If the affected party wins their case, the court may award compensation for:

• Financial loss from relocation costs or job loss
• Injury to feelings (this compensation uses the Vento band structure)
• Aggravated damages in cases of particularly offensive conduct

Generally, the amount granted to the complainant depends on the severity of the discrimination they faced. In a 2024 case, a social housing tenant was awarded £1,000 by the housing ombudsman in a civil case against Tandridge District Council.

In injury to feelings cases, compensation is determined using the Vento bands structure. The fines can range from £1,200 to £12,100 in less serious cases, to £36,400 to £60,700 in the most serious cases.

Penalties under the Renters’ Rights Act

The Renters’ Rights Act introduces new enforcement powers specifically designed to tackle discrimination in the private rented sector. Local councils will be able to issue civil penalties of up to £7,000 to landlords and anyone acting directly or indirectly on their behalf where breaches of the rental discrimination provisions are found. 

Where non-compliant practices persist, multiple penalties may be imposed, significantly increasing financial exposure for landlords and letting agents who fail to address issues promptly. 

Any landlord or agent issued a financial penalty will have the right to appeal to the First-tier Tribunal. That said, the availability of an appeal route does not lessen the importance of having clear, defensible processes in place from the outset. 

Crucially, the Act keeps several routes to redress open for tenants. Prospective tenants will be able to pursue complaints through their local council, the courts, the new Private Rented Sector Ombudsman, or existing letting agent redress schemes. 

This multi-route enforcement model increases the likelihood that discriminatory practices are identified and challenged, even where there is no deliberate intent to discriminate.

What practical steps can you take to avoid rental discrimination? 

We know that letting agents and landlords want to provide a safe, secure home to their tenants. This comes with the responsibility to rent homes in a responsible, non-discriminatory way. To help them out, we’ve compiled a few tips to help you use best practices in your rental process.

Advertising and marketing

Watch your wording

It’s easy to accidentally exclude prospective tenants with the wording of your rental listings. Terms like “professionals only” or “No DSS” might seem like no big deal, but they exclude families with children and benefit claimants. The exact groups the Renters' Rights Act is trying to protect!

Focus on the property

Rather than describing your ideal tenant in your adverts, focus on the property. By describing your rental in a neutral, informative way, you expand your prospective tenant pool and avoid unintentional biases.

Tenant Screening

Use fair, clear criteria

It’s perfectly acceptable to set basic conditions on who you rent your property to. This includes requiring references and proof of income. The problem is any criterion based on a protected characteristic (race, sexuality, etc).

Document, document, document!

Keeping a paper trail will be essential under the new rules. If you need to refuse anybody, you’ll need to be able to justify why in a way that shows you were fair and didn’t discriminate at any point in the process. This will also help you avoid future disputes.

Communication

Treat everyone equally

At every point in the tenancy journey, maintain an appropriate tone and show respect in your communications. This will help build better relationships with tenants and illustrate that you’re not prejudiced against tenants with accents, disabilities, or family situations.

Be mindful during viewings

When showing a property, ensure that the building is accessible and that you’re making any reasonable adjustments for tenants who need them. This could include leaving extra time for viewings or providing written information to tenants with hearing difficulties.

Training

Invest in training

The best way to avoid discrimination is to understand what it is and how to consciously avoid it. Investing a few hours of training can save you a massive headache later and ensure that your tenants are fully supported.

Stay on top of guidelines

All legislation is subject to change as various governments tweak and adjust the rules. Take some time each month to acquaint yourself with all relevant legislation. This will give you the knowledge base you need to offer an exceptional service to your tenants.

How does Goodlord help landlords and agents stay compliant?

At Goodlord, we’re committed to ethical working practices and helping our customers stay compliant with all laws and guidelines around discrimination.

Our referencing process is designed to exclude any processes or questions that might be discriminatory. For instance, we only ask relevant questions through the referencing process. All benefits (Universal Credit, maternity allowance, etc.) are treated as income. This means that as long as a tenant can afford to rent a property, they’ll be reasonably considered.

All the data we collect about a tenant is completely objective. Anything we collect would come up on a regular ID check. There are no assumptions with the Goodlord platform; all tenants are treated equally.

Compliance is baked into what we do as a company. Our system is designed to ensure that our customers comply with the current legislation. This includes incoming changes from the Renters' Rights Act.

Conclusion

Discrimination may seem like an easy problem for right-minded people to solve. Surely all you would need to do is educate yourself on what discrimination is and then simply don’t do it. This, as with most things in the housing sector, is easier said than done.

The reality is that unconscious bias, outdated practices, and inconsistent processes can all lead to unfair outcomes, often without malicious intent. That’s why the Renters’ Rights Act is so important. It will reinforce the protections laid out in the Equality Act 2010 and close long-standing gaps in the law.

At Goodlord, we’re here to support you with compliant processes, inclusive referencing, and tools that make fairness second nature. Fairer renting benefits everyone, and it starts with thoughtful, informed choices made by agents and landlords.

This article is intended as a guide only and does not constitute legal advice. Visit gov.uk for more information. 

FAQs

Q1 - After the Renters’ Rights Act, can landlords discriminate in less obvious ways?

No. The Renters’ Rights Act is designed to address both obvious and subtle forms of discrimination. It doesn’t just ban practices like “No DSS” adverts, but also covers indirect actions that make it harder for families with children or tenants on benefits to rent a property.

Q2 - What if a property genuinely isn’t suitable for children?

Landlords and agents are still allowed to make case-by-case decisions based on suitability, but blanket exclusions are not allowed. For example, a one-bedroom flat may be suitable for a parent with a baby, but not for a household where overcrowding rules would be breached. Any decision to exclude families must be proportionate and based on legitimate factors such as space, safety, or legal occupancy limits.

Q3 - What if a mortgage or lease says the landlord can’t rent to tenants with children or on benefits?

Under the Renters’ Rights Act, restrictive terms in mortgages or superior landlord agreements will have no effect where they require discriminatory practices. This means landlords cannot be forced to discriminate because of their mortgage or lease terms.

Q4 - What if a landlord’s insurance policy restricts renting to tenants with children or on benefits?

Insurance policies that started before the legislation comes into force can continue until they expire or are renewed. However, any new or renewed insurance policy after May 1, 2026, will not be allowed to include discriminatory restrictions.

Q5 - Do the new rental discrimination rules apply outside England? 

The protections are being introduced in England, with the government working closely with Welsh and Scottish administrations to extend similar provisions to Wales and Scotland through the Renters’ Rights Act.