Letting agents in England are accused of actively discriminating against tenants on housing benefits but agent organisations says the problem lies with the Government refusing to change problems in the payment system.
A new report by housing charity Shelter and the National Housing Federation (NHF) names the worst offenders as a result of an undercover investigation carried out by Mystery Shoppers Ltd.
Some 149 regional letting agent branches were called by researchers posing as prospective tenants. It found that one in 10 had a branch policy not to let to anyone on housing benefit, regardless of whether they could afford the rent.
The research also revealed what it describes as a ‘wider uphill struggle’ faced by housing benefit tenants. Almost half, some 48% of branches called, said they had no suitable homes or landlords willing to let to someone on housing benefit.
Appalled by the findings, the two housing organisations have joined forces to urge letting agents and landlords to remove these bans, which they argue are both grossly unfair and likely to be unlawful.
The research points out that a lack of social housing being built means that there are an estimated 1.64 million adults who now rely on housing benefit to help with expensive private rents.
It also shows that the majority are women, especially single mothers with childcare responsibilities. People who receive disability benefits are also three times more likely to need a housing benefit top-up.
And it warns that under the Equality Act 2010, letting agents who reject housing benefit tenants outright could be at risk of breaking the law because of indirect discrimination against women and disabled people.
‘This ugly undercurrent of discrimination is wreaking havoc on hundreds of thousands of people’s lives. No DSS is an outdated and outrageous example of blatant prejudice. Private renting is now so expensive that many people simply can’t get by without some housing benefit, even if they’re working,’ said Polly Neate, chief executive of Shelter.
‘At Shelter we hear from families who’ve always paid their rent being pushed to breaking point after having the door repeatedly slammed shut on them just because they need housing benefit,’ she explained.
‘Rejecting all housing benefit tenants is morally bankrupt, and because these practices overwhelmingly impact women and disabled people, they could be unlawful. That’s why we’re urging all landlords and letting agents to get rid of housing benefit bans, and treat people?fairly?on a case by case basis,’ she added.
According to David Orr, chief executive of the National Housing Federation, which represents social landlords of around six million people, letting agents should be ashamed that discrimination is still happening today in the form of an outright ban on people simply because they depend on housing benefit.
‘We know this is purely based on prejudice. The homeless shelters and charities housing vulnerable people that we represent, find it increasingly impossible to help their residents move in to their own independent home,’ he said.
‘Often, nowhere in the private rented sector will take someone on benefits and the chronic shortage of social housing means often none of this is available. Landlords and letting agents must see sense and assess people on a case by case basis, whilst Government urgently need to invest in the building of new social homes,’ he added.
David Cox, chief executive of the Association of Residential Letting Agents (ARLA), pointed out that there is a systemic problem with how housing benefit works. ‘Rents are paid in advance, whereas housing benefit is paid in arrears, and therefore with such a shortage of rental accommodation, landlords and agents will naturally choose a tenant who can pay the rent when it is due, rather than a tenant who is always a month in arrears,’ he said.
‘We have called on the Government time and time again to resolve this problem. But our calls have fallen on deaf ears. To make the situation worse, many lenders also have a clause in their buy to let mortgage agreements which prevent landlords from letting to housing benefit tenants. This situation does not exist because of landlords or letting agents, it is a systemic problem caused by Government and the banks,’ he added.
