23 July 2020

ATTENTION PROPERTY LANDLORDS - Time to stop using 'No DSS'

A disabled mum-of-two emerged victorious from York County Court earlier this month after winning a case that sent ripples through the lettings industry.

The woman, who was on housing benefit, had been blocked from renting a property by a blanket “no DSS” lettings policy.

The court heard the woman, who had a part-time job, good references from two previous landlords and a reliable guarantor, had been treated unfairly. The judge agreed and awarded her £3,500 in damages and costs.

Legal implications

The ruling is significant because, despite lots of rumblings over “no DSS”, it is the first time a judge has ruled it is unlawful and discriminatory. 

Homeless charity Shelter says the case sends a clear warning to landlords “that they risk legal action if they continue to bar housing benefit tenants from renting”.

Now some legal eagles have noted that as the ruling was made in a county court, it is not binding on other courts. But I think this is splitting hairs. 

Even before the York court case, some tenants had won out-of-court settlements after challenging adverts which openly banned benefit claimants.

The direction of traffic is clear: blanket bans that take no account of an individual’s circumstances are increasingly risky. A one-size-fits-all approach can leave a landlord exposed to the threat of legal action and one big headache.

Push to end “no DSS”

The term “no DSS” has been used in property listings for years to make it clear benefit recipients will not be considered for a tenancy.

It’s loathed by welfare charities who argue it should be a relic of the past. (History buffs take note the DSS – the Department for Social Security – ceased to exist back in 2001).

There are many reasons why historically some landlords have not rented to people on benefits. One is that some mortgages and insurance policies were invalidated if the tenant was on benefits. 

But things have changed. Many lenders, including the Co-operative, Nationwide and NatWest, have loosened buy-to-let mortgage restrictions that relate to benefits tenants. And the phrase “no DSS” has been banned by property portals Zoopla and Rightmove. 

Covid-19 Benefits

During this pandemic I’m sure we would all agree that the majority of ‘employed’ people in the private sector across the country are receiving some form of benefit via a government scheme designed to protect their own jobs and their employers.

Both tenants and landlords have also been protected as a result of the government introducing rent and mortgage repayment holidays.

I suppose you could say 'most people are on benefits'.

Finding the right tenant for your property

Understandably, a landlord wants to find a reliable and respectful tenant.

But slapping “no DSS” at the end of a property listing can be like hitting a walnut with a sledgehammer.

Who – other than a lawyer, of course – wants to get caught up in a legal dispute over the fine-print of the Equality Act 2010? 

So, please remember if you are a landlord looking for tenants PLEASE stop using the term ‘no DSS’. It is illegal and unwanted. 

Landlords and lettings agents can still conduct the usual referencing and credit checks on potential tenants. There are many people receiving benefits that still have a good credit rating.

Thanks for reading 

I am always happy to help sellers, buyers, landlords and tenants

geraldbowers@thegoodea.co.uk

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01777 237310 or message 07981 744003


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