Landlord groups are urging ministers to tighten and clarify new guidance under the Renters’ Rights Act, warning that vague rules on rental discrimination could leave law-abiding landlords exposed to fines and accusations despite following standard affordability checks. The sector says clearer parameters are essential before implementation later this year.
Rental discrimination rules need clarity for landlords
Under the Act, landlords and letting agents across England will be prohibited from turning away applicants because they receive benefits or have children. Penalties of up to £7,000 will apply for breaches. While the intention is to end outdated “no DSS” practices, Propertymark argues that the current framework leaves large grey areas – especially around how affordability assessments should operate without risk of misinterpretation.
The government maintains that it is consulting on the implementation phase and will “provide more information in due course.” But landlords say the clock is ticking, and the lack of detail risks creating uncertainty at a time when supply in the private rented sector is already stretched. According to ONS rental data, average monthly rents rose 6.1% year-on-year in 2024, equivalent to roughly £78 extra per month for a typical two-bed flat – a trend that has already pushed some landlords to consider exiting the market.
Megan Eighteen, President of ARLA Propertymark, said that while fair access to housing is essential, the law still lacks operational clarity. “Referencing should continue to focus on legitimate factors such as affordability, income sustainability, credit history, and previous tenancy conduct,” she said. Landlords report that benefit schedules or variable payment amounts often cause delays, which can jeopardise mortgage-linked timelines – a practical issue the guidance does not yet address.
Property suitability checks must not be mistaken for discrimination
Eighteen also raised concerns that decisions based on safety or overcrowding rules could be wrongly classified as discrimination. As an example, government guidance itself notes that a one-bedroom flat may safely accommodate a parent with a baby but not a family with two teenagers due to statutory overcrowding limits.
This tension is a practical headache for landlords who must comply with housing standards, local licensing conditions and HHSRS obligations. An East Midlands letting agent told us that confusion is already creeping in: “We’re doing our best to follow the emerging rules, but without firm definitions, staff are nervous about refusing applicants even where a property simply isn’t suitable.” Their comment reflects a broader market anxiety rather than criticism of any individual applicant.
For investors managing multiple units or HMOs, the risk of misinterpretation is even higher. A refusal based on fire-escape limitations, room sizing, or licensing caps must be documented, and the landlord must show this was a proportionate response to legitimate safety concerns – a level of evidencing that many small landlords say they are not yet prepared for.
Referencing and affordability checks
Propertymark warns that referencing needs explicit rules to remain workable. Affordability benchmarks remain essential for lenders, insurers and landlords alike. UK Finance data shows that over 1.3 million buy-to-let mortgages remained active in 2024, many subject to tighter stress-testing since interest rate rises. Landlords argue that they cannot simply ignore affordability because a tenant’s income source varies.
The NRLA has previously highlighted that poorly drafted legislation often leads to unintended consequences – typically a further reduction in rental supply. If landlords perceive the compliance burden as too risky, they may choose to let fewer properties or exit the sector altogether, which ultimately pushes rents higher for everyone.
Government guidance currently states that landlords should consider applicants individually and that any exclusion must be “a proportionate means of achieving a legitimate aim.” But without concrete examples, many believe the sector is at risk of inconsistent enforcement.
Editor’s view
The Renters’ Rights Act will only succeed with robust, practical guidance that protects tenants from genuine discrimination while allowing landlords to continue essential affordability checks without fear of penalties. The private rented sector already faces rising costs, dwindling supply and increased regulation. Clarity now could prevent a wave of cautious withdrawals later. The question for policymakers is simple: will they provide it in time?
Author: Editorial team – UK landlord & buy-to-let news, policy, and finance.
Published: 23 December 2025
Sources: Propertymark, ARLA Propertymark, ONS rental index, UK Finance, Renters’ Rights Act guidance
Related reading: Renters’ Rights Act could slow rental upgrades as landlords cut improvement spending
