Episode Details

A District Judge has ruled that blanket bans on renting properties to people on housing benefit are unlawful and discriminatory.

The "momentous" court ruling found a single mother-of-two had experienced indirect discrimination when a letting agent refused to rent to her.

She ended up homeless with her two children, when her case was taken on by housing charity Shelter.

The judge ruled "No DSS" rental bans are against equality laws.

District Judge Victoria Mark heard this latest case in York County Court on 1 July, and ruled: "Rejecting tenancy applications because the applicant is in receipt of housing benefit was unlawfully discriminating on the grounds of sex and disability" and contrary to the Equality Act 2010, she said.

People deserve a home but that doesn’t mean everyone has a “right” to rent home in the private sector. Landlords must also be able to choose who they want to take on as a tenant. I have current experience with both private and benefit tenants with mixed results. 

The LHA rates in some areas are simply not competitive or equivalent to the open market rate and dealing with benefit claims is a steep learning curve for landlords. Deposits and upfront rent can also be an issue.

The rates paid to landlords are also confusing and differ according to age. Is that not age discrimination?

The private sector should not have to pick up the pieces for the failures of successive governments to build enough social housing. There has been no major council house building programme since the 1970’s.

The last major town to be built with proper infrastructure and rail transport links was Milton Keynes which, along with other new towns, was planned in the 1960’s.

Councils can build more social housing and borrow at low rates, but many choose not to. 

I'm not sure if a ruling by a District Judge in a County Court is binding in law. If it is binding, it will be a further example of ‘red tape’, costs and legislation for private landlords, many of whom feel like they are swimming against the tide in the buy-to-let market.

Investment in buy-to-let properties can still be profitable when done professionally. However, there are still many other opportunities to make money in property without the need for buy-to-let mortgages, large deposits or high rates of tax. 

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