Lesson 3 – Families, Children and Benefit Recipients

Learning Objectives

By the end of this lesson, learners will be able to:

• Understand the legal principles that apply when considering applications from families, households with children, and benefit recipients.
• Recognise the risks associated with discriminatory policies and practices.
• Understand the legal issues surrounding “No DSS” policies.
• Assess applicants using fair and objective criteria.
• Understand when reasonable adjustments may be required.
• Implement best practice tenant selection policies that comply with the Equality Act 2010.

Introduction

Landlords have a legitimate interest in selecting tenants who can meet their tenancy obligations and look after their properties. However, decisions must be based on objective and lawful criteria rather than assumptions, stereotypes, or blanket policies.

In recent years, there has been increased scrutiny of policies affecting:

• Families with children.
• Benefit recipients.
• Disabled applicants.
• Vulnerable households.

Courts, regulators, local authorities, and housing organisations have increasingly challenged practices that unfairly exclude certain groups from accessing rented accommodation.

The Renters’ Rights Act and the Equality Act 2010 reinforce the importance of fairness, transparency, and evidence-based decision-making.

This lesson examines the legal framework and practical steps landlords should take when assessing applications from families, children, and benefit recipients.

Restrictions on Discrimination

Understanding Discrimination Risks

Discrimination does not always occur intentionally.

Many landlords believe they are making commercial decisions when, in reality, certain policies may place particular groups at a disadvantage.

Examples include:

• Blanket exclusions.
• Inflexible application procedures.
• Assumptions about affordability.
• Refusal to consider individual circumstances.

Landlords must ensure their policies are both lawful and justifiable.

Equality Act Considerations

The Equality Act protects individuals from discrimination relating to protected characteristics.

Some housing policies may indirectly affect groups protected by the legislation.

For example:

• Women may be disproportionately represented among single-parent households.
• Disabled people may be more likely to receive benefits.
• Certain age groups may be affected by housing restrictions.

Landlords should therefore consider the wider impact of their decisions.

Individual Assessment

One of the most important principles is that applicants should be assessed individually.

Decisions should be based on:

• Affordability.
• References.
• Credit history.
• Income.
• Guarantor availability.
• Rental history.

Individual assessment is generally safer than blanket exclusions.

Avoiding Blanket Policies

Policies that automatically exclude entire categories of applicants can create significant legal risks.

Examples may include:

• Refusing all benefit recipients.
• Refusing all applicants with children.
• Refusing all disabled applicants.
• Refusing all single parents.

Each case should be assessed on its own merits.

DSS and Benefit Applicants

Understanding the Term “DSS”

The term “DSS” is still widely used within the housing sector, although the Department of Social Security no longer exists.

The phrase is commonly used to describe applicants who receive:

• Universal Credit.
• Housing Benefit.
• Disability benefits.
• Income-related support.

Many applicants receive benefits while also being employed.

Historical Practices

For many years, some landlords and letting agents advertised properties with statements such as:

• No DSS.
• No benefits.
• Working professionals only.

Such practices have attracted increasing legal scrutiny.

Why Blanket Exclusions Are Problematic

A blanket refusal to consider all benefit recipients may be difficult to justify.

This is because certain protected groups are statistically more likely to receive benefits.

Examples include:

• Disabled people.
• Single parents.
• Women.
• Individuals with long-term health conditions.

As a result, blanket exclusions may create indirect discrimination risks.

Assessing Benefit Applicants Fairly

Benefit income should be assessed in the same way as other forms of income.

Factors landlords may consider include:

• Total household income.
• Affordability.
• Stability of income.
• Guarantor availability.
• Previous tenancy history.
• References.

The key question is whether the applicant can meet their tenancy obligations.

Mortgage and Insurance Restrictions

Historically, some landlords faced restrictions imposed by:

• Mortgage lenders.
• Insurance providers.

While such restrictions have become less common, landlords should always verify current requirements.

Where restrictions genuinely exist, landlords should retain evidence.

Families with Children

Families in the Private Rented Sector

Families with children represent a significant proportion of private rented sector households.

Many families rent for long periods and regard the property as their home.

The Renters’ Rights Act places greater emphasis on housing stability for families.

Common Concerns Raised by Landlords

Some landlords express concerns regarding:

• Wear and tear.
• Occupancy levels.
• Noise complaints.
• Garden maintenance.
• Property suitability.

However, assumptions should not replace proper assessment.

Assessing Family Applications

When considering applications from families, landlords should focus on legitimate factors such as:

Property Size

Whether the property is suitable for the proposed household size.

Occupancy Standards

Whether occupancy levels comply with legal requirements.

Affordability

Whether the household can afford the rent.

Referencing

Whether references support the application.

These considerations are generally more appropriate than assumptions about children.

Overcrowding Considerations

Landlords have legitimate responsibilities regarding overcrowding.

Factors that may be considered include:

• Number of occupants.
• Number of bedrooms.
• Property layout.
• Local authority guidance.

Occupancy decisions should be based on objective housing standards.

Avoiding Assumptions

Landlords should avoid assumptions such as:

• Children always cause damage.
• Families are less reliable tenants.
• Parents cannot afford rent.

Each application should be assessed individually.

Reasonable Adjustments

Understanding Reasonable Adjustments

Where disability is involved, landlords may need to consider reasonable adjustments in certain circumstances.

The purpose is to ensure disabled persons are not placed at a substantial disadvantage.

Examples of Reasonable Adjustments

Examples may include:

Communication Adjustments

Providing information in an alternative format.

Flexible Procedures

Making reasonable modifications to application processes.

Property Adaptations

Considering requests for appropriate disability-related adaptations.

Assessing Requests

When considering requests, landlords may examine:

• The nature of the disability.
• The practicality of the adjustment.
• Cost implications.
• Impact on the property.
• Available alternatives.

Professional advice should be sought where uncertainty exists.

Responding to Requests

Landlords should:

• Consider requests carefully.
• Respond promptly.
• Document decisions.
• Explain the reasons why requests are refused.

Good communication often helps avoid disputes.

Best Practice Policies

Creating Fair Policies

The safest approach is to develop policies based on objective criteria rather than personal preferences.

Policies should focus on:

• Affordability.
• Referencing.
• Occupancy suitability.
• Property management considerations.

This helps demonstrate fairness and consistency.

Written Application Procedures

Professional landlords often use standardised procedures.

These may include:

• Application forms.
• Referencing processes.
• Affordability assessments.
• Selection criteria.

Written procedures provide consistency and transparency.

Consistent Decision-Making

Consistency is one of the strongest protections against discrimination claims.

All applicants should generally be assessed using the same framework.

This helps ensure decisions are based on evidence rather than assumptions.

Record Keeping

Landlords should retain:

• Applications.
• Referencing reports.
• Affordability calculations.
• Decision records.
• Correspondence.

Accurate records help demonstrate lawful decision-making.

Staff and Agent Training

Where landlords employ staff or use letting agents, training is important.

Everyone involved in tenant selection should understand:

• Equality obligations.
• Anti-discrimination principles.
• Application procedures.
• Record-keeping requirements.

Training helps reduce legal risks.

Practical Examples

Example One – Benefit Recipient

A prospective tenant receives Universal Credit and works part-time.

The landlord conducts an affordability assessment, obtains references, and reviews the applicant’s financial circumstances.

The decision is based on evidence rather than the fact that benefits are received.

This demonstrates a lawful approach.

Example Two – Family with Children

A family applies for a three-bedroom property.

The landlord assesses:

• Household size.
• Affordability.
• References.
• Occupancy suitability.

The decision is based on objective criteria rather than assumptions about children.

Example Three – Disability-Related Request

A disabled applicant requests adjustments to the application process.

The landlord considers the request, makes reasonable modifications, and documents the decision.

This helps ensure compliance with equality obligations.

Common Mistakes Made by Landlords

Landlords frequently encounter difficulties because they:

• Apply blanket exclusions.
• Make assumptions about applicants.
• Ignore equality considerations.
• Maintain inadequate records.
• Fail to assess applicants individually.
• Use inconsistent procedures.

Most discrimination risks can be reduced through proper policies and training.

Best Practice Recommendations

Professional landlords should:

• Assess every applicant individually.
• Use objective affordability criteria.
• Avoid blanket exclusions.
• Maintain detailed records.
• Apply consistent procedures.
• Consider reasonable adjustments where appropriate.
• Review policies regularly.

A fair and evidence-based approach helps protect both landlords and applicants.

Lesson Summary

In this lesson, we have explored:

• Restrictions on discrimination.
• Applications from benefit recipients.
• Families with children.
• Reasonable adjustments.
• Best practice policies.

The key principle is that tenancy decisions should be based on objective and legitimate factors rather than assumptions or blanket policies. By adopting fair procedures, maintaining good records, and assessing applicants individually, landlords can reduce legal risks while selecting suitable tenants for their properties.