We look at what a recent court
ruling that found a “no DSS” letting ban was unlawful means for landlords.
A disabled mum-of-two emerged victorious from York
County Court earlier this month after winning a case that sent ripples through
the lettings industry.
The woman, who was on housing benefit, had been
blocked from renting a property by a blanket “no DSS” lettings policy.
The court heard the woman, who had a part-time job,
good references from two previous landlords and a reliable guarantor, had been
treated unfairly. The judge agreed and awarded her £3,500 in damages and costs.
Legal implications
The ruling is significant because, despite lots of
rumblings over “no DSS”, it is the first time a judge has ruled it is unlawful
and discriminatory.
Homeless charity Shelter says the case sends a clear
warning to landlords “that they risk legal action if they continue to bar
housing benefit tenants from renting”.
Now some legal eagles have noted that as the ruling
was made in a county court, it is not binding on other courts. But we think
this is splitting hairs.
Even before the York court case, some tenants had won out-of-court settlements after challenging
adverts which openly banned benefit claimants.
The direction of traffic is clear: blanket bans that
take no account of an individual’s circumstances are increasingly risky. A
one-size-fits-all approach can leave a landlord exposed to the threat of legal
action and one big headache.
Push to end “no DSS”
The term “no DSS” has been used in property listings
for years to make it clear benefit recipients will not be considered for a
tenancy.
It’s loathed by welfare charities who argue it should
be a relic of the past. (History buffs take note, the DSS – the Department for
Social Security – ceased to exist back in 2001!).
There are many reasons why historically some
landlords have not rented to people on benefits. One is that some mortgages and
insurance policies were invalidated if the tenant was on benefits.
But things have changed. Many lenders, including the
Co-operative, Nationwide and NatWest, have loosened buy-to-let mortgage
restrictions that relate to benefits tenants. And the phrase “no DSS” has been banned
by property portals Zoopla and Rightmove.
Finding the right
tenant for your property
Understandably, a landlord wants to find a reliable
and respectful tenant.
But slapping “no DSS” at the end of a property
listing can be like hitting a walnut with a sledgehammer.
Landlords need a more nuanced strategy which
considers applicants on a case by case basis.
This legwork might take a little more time, and
involve more admin, but in the long run, it is worth it. This is where we come into our own as
experienced, ethical letting agents.
Who – other than a lawyer, of course – wants to get
caught up in a legal dispute over the fine-print of the Equality Act
2010? We can think of about 5,000 other things we’d rather do with our
time.
If you’d like more advice about how to find a good
tenant and protect your investment, contact us.
We’ll take the stress out of the rental process and
give you back time to focus on other priorities you have.
At Martin & Co Tunbridge Wells we’re here
to help landlords navigate the TUNBRIDGE WELLS lettings market. If you
have any questions about the issues raised in this article, please get in
touch.
No comments :
Post a Comment