Landlords who refuse to let properties to tenants claiming benefits or those with children will face criminal penalties from 1 May 2026, following new guidance issued by Propertymark ahead of the Renters Rights Act provisions taking effect.
The anti-discrimination rules, which apply in England and Scotland from 1 May and in Wales from 1 June 2026, make it illegal to disadvantage prospective or existing tenants because they receive housing benefit or have dependent children. Landlords and letting agents found guilty of breaching the rules in Scotland face fines of up to £1,000.
What the new rules ban
The legislation covers both direct and indirect discrimination throughout the rental process. Explicit practices such as “No DSS” advertisements are banned, but so are more subtle approaches – for example, imposing stricter financial requirements on benefit recipients that are not applied to other applicants.
The rules apply at every stage of the tenancy process, including when tenants enquire about a property, access information, arrange or attend viewings, and enter into a tenancy agreement. In Scotland, the rules have retrospective effect, meaning they cover existing agreements as well as new ones.
This follows Landlord Knowledge’s February report on charity calls for penalties against landlords who discriminate based on personal circumstances. The new rules formalise these requirements into law, making enforcement immediate from May.
What landlords can still do
Landlords retain the final say on tenant selection, but decisions must be based on affordability and suitability rather than benefit status or family composition. Standard referencing checks remain permitted, and landlords can still request guarantors, rent in advance once the tenancy is agreed, and apply financial criteria – provided these are consistent across all applicants.
Limited exceptions exist. Refusing children may be lawful if it is a proportionate way to avoid statutory overcrowding, but no equivalent exemption exists for benefit claimants. Any clauses in mortgages, superior landlord agreements, or new insurance contracts that prevent letting to tenants with children or on benefits will have no legal effect. Existing insurance policies with such restrictions are temporarily exempt until renewal.
Local authorities will lead enforcement in Scotland, with Police Scotland and the Procurator Fiscal responsible for investigation and prosecution. Landlords preparing for the wider RRA changes taking effect on 1 May should review their application and referencing processes to ensure compliance.
What this means for landlords
- Review all marketing: Remove any language that could discourage benefit claimants or families from applying, including phrases like “professional tenants only” if used as a proxy.
- Standardise referencing: Apply the same affordability criteria to all applicants – requiring guarantors only from certain groups could breach the rules.
- Check insurance policies: Contact your insurer before renewal to ensure policies do not contain discriminatory clauses that are now unenforceable.
- Train staff: Letting agents and employees who handle enquiries must understand what questions and practices are now prohibited.
- Bottom line: Selection must be based on ability to pay and property suitability – not on source of income or family status.
Editor’s view
The ban on rental discrimination removes any ambiguity for landlords about acceptable practices. While most professional landlords already assess tenants on affordability rather than benefit status, the formalisation into criminal law with £1,000 penalties ensures consistency across the sector. With six weeks until implementation, landlords should use the time to audit their processes rather than wait for enforcement to begin.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 19 March 2026
Sources: Propertymark, Ministry of Housing, Communities and Local Government
Related reading: Charities call for fines on landlords who reject young renters
