The Renters’ Rights Act 2025– Preventing discrimination in the private rented sector

One of the key changes to the private rented sector are the new anti-discrimination provisions set out in Chapter 3 of the Renters’ Rights Act 2025 which will come into force from 1^st May 2026. The aim of these anti-discrimination provisions is to prevent both overtly and indirectly discriminatory practices which restrict access to the private rented sector by prospective tenants who have children or are in receipt of benefits.

The content of the new anti-discrimination provisions

The anti-discrimination provisions in the Renters’ Rights Act will have the following implications:

1. It will be unlawful for all landlords and agents to have blanket bans on letting to tenants who have children or are in receipt of benefits.
2. It will be unlawful for landlords and agents to directly or indirectly discriminate against such tenants when deciding who to let their properties to.
3. Landlords will need to consider all tenants but are not permitted from turning down tenants on the basis of affordability

These provisions will apply to ‘relevant tenancies’ under the Renters’ Rights Act which are assured tenancies (governed by the Housing Act 1988) and regulated tenancies (older tenancies governed by the Rent Act 1977.

Landlords and agents should not do anything that would either prevent or make a tenant less likely to be able to rent a property because they have children under 18 years old who would either visit or live with them at the property (‘the children basis) or are in receipt of benefits (‘the benefits basis’). This will be considered ‘rental discrimination’ and is unlawful.

The guidance produced by the Government for landlords provides some examples of what sort of behaviour might amount to rental discrimination including:

1. Withholding information about a property including its availability;
2. Stopping someone from viewing a property; and
3. Refusing to grant someone a tenancy

Penalties for breach of anti-discrimination provisions

If a landlord is found to be in breach of the anti-discrimination provisions, the following penalties may be available by way of redress:

1. A local housing authority may impose a financial penalty of up to £7,000 for each offence provided they are satisfied on the balance of probabilities that the landlord, agent or anyone acting on their behalf has breached the above provisions.
2. Additional financial penalties can be imposed if rental discrimination continues to be carried out for an additional 28 days after the initial financial penalty is imposed (or, in the event of an appeal, after an appeal is determined, withdrawn or abandoned) or within five years of the imposition of an initial penalty under the provisions.
3. The Secretary of State has the power to bring in additional regulations to combat discriminatory practices and protect other parties.

Available defences

There are two available defences under the Act.

1. Defence 1: ‘The justificatory defence’

The justificatory defence applies where the landlord’s discrimination of the prospective tenant because of ‘the children basis’ or ‘the benefits basis’ was a proportionate means of achieving a legitimate aim. The burden is on the landlord to prove this on the balance of probabilities.

Despite the existence of this defence, it may be difficult for landlords to show that their actions are a proportionate response, and therefore justified despite amounting to rental discrimination.

2. Defence 2: Requirement of an insurance contract entered before 1^st May 2026

There is also a defence if the rental discrimination was carried out by the landlord because of a requirement under the terms of an insurance contract entered or already in place before 1^st May 2026. This is where the applicable insurance contract prohibits the landlord from renting to an individual who satisfies ‘the children basis’ or ‘the benefits basis’. Such a term will only have effect until this particular insurance contract ends or is renewed.

3. No prohibition if considered to determine affordability to pay the rent

Landlords are still permitted to take into account the income of prospective tenants when assessing whether they would be able to afford the rent. If landlords can show that their enquiries as to the applicant’s benefits status or whether the applicant has children are to determine whether the tenants can afford the rent and meet the income requirement, this will not amount to rental discrimination.

4. Generally no defence to rely on terms in mortgage or superior lease

Generally, landlords cannot rely on any term in a mortgage or superior lease which permit discrimination on these two grounds and such terms will have no effect going forward.

The only exception to this general rule is in relation to terms of a superior lease where the term is either (1) a proportionate means of achieving a legitimate aim or (2) a required term to prevent the landlord breaching a term of their insurance contract which is valid under the second defence above.

Is this really much of a change?

Such discriminatory practices covered by Chapter 3 were already unlawful under equality law. In 2020, the County Court at York held that blanket bans on renting properties to people on housing benefit were unlawful indirect discrimination. In 2023, the Property Ombudsman found that blanket bans on renting to families were a breach of its Code of Practice on the basis that such policies had a disproportionate effect on women.

Despite this, the Renters’ Rights Act makes it clear that it is not permissible in the private rented sector to discriminate against a prospective tenant on ‘the children basis’ or ‘the benefits basis’. In contrast, the Equality Act 2010 is much broader and requires such discrimination to be associated with a particular protected characteristic, e.g. disability, sex, marriage, etc. Therefore, Chapter 3 does bring change by providing explicit protection to renters who have children under 18 years old or are in receipt of benefits from discrimination in the private rented sector.

Summary

The anti-discrimination provisions in the Renters’ Rights Act are a clear statement from Parliament that they want to curtail attempts to restrict access to the private rented sector on these two bases. Certain discriminatory practices have always been unlawful, but the Renters’ Rights Act makes this crystal clear and provides considerable powers to both local authorities and the Secretary of State to prevent the use of discrimination to interfere with access to the private rented sector. However, how readily breaches of these provisions will be found following the Act’s commencement date will depend on the interpretation of their scope.

Next Steps for landlords

The Act states that compliance with these new anti-discrimination rules will be required from 1^st May 2026. From now until then, landlords must ensure they are aware of their obligations to prospective tenants and what they need to do to ensure their compliance with these rules. This is something our solicitors at Anthony Gold can assist with.

If you would like to enquire, please contact us at 020 7940 4060 or at mail@anthonygold.co.uk.