Discrimination

c.jermyn • July 23, 2020

Discrimination and refusing tenancy application due to benefits 

Discrimination in society has been an evolving topic lately, as we continue to challenge what is considered the norm.

Last week, discrimination in residential tenancies was under the spotlight, as a single mother won £2000 compensation against a letting agent on the grounds that they indirectly discriminated against her sex and disability for refusing to accept her as a tenant while claiming benefits. 

The facts

The single mother in question has a disability and had been a tenant for many years with good references. While she was searching for a new tenancy, the letting agent sent an email to her confirming that they “have had a policy of not accepting housing benefit tenants”.

The single mother brought a claim against the letting agent for sex and disability discrimination under sections 19 and 29 Equality Act 2010 and for a declaration in the County Court. 

The Law

It would appear that the letting agent settled the case with the single mother and the judge ordered the agent to pay damages of £3500 and costs. The District Judge also made a declaration stating that the agent’s former “policy of rejecting tenancy applications because the applicant is in receipt of Housing Benefit was unlawfully indirectly discriminatory on the grounds of sex and disability contrary to sections 19 and 29 of the Equality Act 2010.”

The Judge’s reasoning for the above is as follows:

Discrimination on the grounds of sex: “a No DSS policy puts or would put women at a particular disadvantage… As women are more than 1.5 times as likely to rely on Housing Benefit, and thus be excluded by a No DSS policy, than men.”

Discrimination on the grounds of disability: “a No DSS policy puts or would put persons who are disabled at a particular disadvantage… In the private rented sector, disabled households are almost three times as likely to rely on Housing Benefit, and thus be excluded by a No DSS policy, than non- disabled households".

What does this mean? 

While the District Judge’s declaration is important and should be considered by letting agents, it is a County Court Judgment and, therefore, is not binding on other courts. This means that a blanket policy of refusing potential tenants who claim housing benefit is unlawful; however, agents can still refuse potential tenants who claim housing benefit.

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