It stands to reason that landlords don't want to discriminate against people unfairly or unreasonably when it comes to renting a property, but how do you ensure that's embedded into the letting processes? Furthermore, what are the updated anti-discrimination rules being introduced by the upcoming Renters’ Rights Bill?
In this article we offer an introduction to help landlords understand their responsibilities around anti-discrimination rules under the new regulations, so you can be safe in the knowledge you're doing the right thing and that you won’t inadvertently land on the wrong side of a penalty for non-compliance.
The Renters’ Rights Bill is a recent legislative proposal aimed at strengthening tenants' rights in the private rental sector, set to come into force at the end of 2025 or start of 2026. It includes a series of reforms on evictions, housing standards, and discrimination, as well as outlining more formal processes for complaints and penalties for non-compliance.
There are already a anti-discrimination rules in place. For example, under the Equality Act 2010, there are number of protected characteristics, including:
● Age
● Disability
● Gender reassignment
● Marital status
● Pregnancy/maternity
● Race, religion or belief
● Sex or sexual orientation
In practice, discrimination in a rental context might look like:
● Refusing to let a property based on nationality or ethnicity
● Advertising with language that's designed to exclude
● Unequal treatment during referencing or viewings
The Renters’ Rights Bill will further prohibit direct or indirect discrimination against renters who have children or who receive benefits. Referencing checks are still allowed to make sure tenancies are sustainable for renters based on affordability.
The changes in the bill will aim to take action against overt discriminatory practices, as well as situations where landlords or letting agents use other indirect practices in order to prevent someone entering into a tenancy. They propose that this includes things like:
● Banning ‘no DSS’ adverts - i.e., it will prohibit discrimination against renters who have children or who receive benefits.
● Banning 'no migrants' adverts
● Using 'working professionals only' adverts
The bill also aims to put more power in the hands of tenants, including processes by which they can challenge unfair practices, including discrimination. For example, it will introduce more formal complaints processes and penalties for non-compliance. This includes:
● A new Private Rented Sector Landlord Ombudsman, which will be the go-to place for tenants to escalate a complaint, while providing landlords with guidance as well as quick and binding resolutions to many issues.
● Local councils are being given a range of new powers to check and enforce standards or to take action against anyone who doesn't comply.
The bill notes that referencing checks are still allowed to make sure tenancies are sustainable for renters based on affordability. It states:
"Landlords and agents will continue to have the final say on who they let their property to and can carry out referencing checks to make sure tenancies are sustainable for all parties. They will be able to do this based on affordability, but not on the basis the prospective tenant has children or is in receipt of benefits."
There's a significant emphasis in the bill on penalties for non-compliance, as well as an established process for enforcement and investigation. For example, local councils are being given a range of new powers to check and enforce standards or to take action against anyone who doesn't comply.
Penalties for non-compliance include:
● A civil penalty of up to £7,000 for initial or minor non-compliance
● A civil penalty of up to £40,000 for serious, persistent, or repeat non-compliance
● Serious, persistent or repeat non-compliance may also lead to a criminal prosecution
● Failure to comply with ombudsman decisions may lead to landlords being expelled from the Private Rented Sector Landlord Ombudsman scheme, followed by possible fines and penalties from the local council
● Rent repayment orders (RROs) may also mean tenants can seek repayment of rent from their landlord if they don't comply with the Renters’ Rights Bill
A good letting agent will be familiar with the changes being brought in and will have built them into their own practices, creating a framework you can be confident in from day one of your letting journey. They will be able to offer you comprehensive guidance to make sure you are always acting within the rules, and answer any questions you may have. That said, it's helpful to go through the following checklist to make sure you have a clear understanding of the rules yourself:
● Register with the Private Rented Sector Landlord Ombudsman Service, when this is established (which will require additional legislation)
● Register the landlord and property with the Private Rented Sector Database when this is established
● Check that the property meets the requirements of the Decent Homes Standard (DHS) when the new DHS has been published
● Gather all essential documentation including Gas Safety Certificates, Energy Performance Certificates (EPCs), and electrical compliance reports (EICRs)
● Review tenancy agreements to ensure they meet the new requirements
● Keep a digital and printed, organised and up-to-date record of all communications between yourself, the agent, the tenant, and any other relevant parties
● Familiarise yourself with the updated notice procedures, new grounds for possession, as well as complaint and dispute resolution process
● Make sure your notice procedures are up to date
● Take time to read the Renters’ Rights Bill yourself and discuss any questions with your letting agent: https://bills.parliament.uk/bills/3764
● Work with a letting agent you trust, with the size and scope of services to support the requirements for you and your property
Chestertons is one of London’s largest and most established estate agents, with an award-winning, ARLA-qualified, lettings team. We offer a wide range of services, from a property management team to a full-time compliance department. As a result, we are not only fully informed about the latest rules, regulations, and requirements, but ensure they are reflected in our policies and processes, and are communicated to you. We are also in a position to support you in making sure your property meets and exceeds those expectations at all times.
If you would like to find out more about working with Chestertons contact your local Chestertons letting agent at any time.
Contact your local Chestertons letting agent
https://www.chestertons.co.uk/estate-agents/head-office#contact-branch