NO DSS Letting Agents and Landlords

David2710

Following two recent court rulings in which letting agencies were fined for discriminating and rejecting applicants claiming out of work benefits I was curious to see if anything has changed. Having searched 'DSS' in Trovit, Zoopla and Right Move here are the results. 

Out of the hundreds of mostly studio and 1 bedroom properties advertised just a tiny handful offered DSS Welcome without pre-conditions but the properties were typically overpriced of postage stamp size and were offering shared bathroom and kitchen facilities. The 98 percent of properties offering DSS accommodation also required the tenant was working a minimum 20hrs and had a guarantor.

Because many sick & disabled don't work the required 20hrs a week and don't have a guarantor they are left with a very narrow and poor choice of properties. This despite the fact most will have a good record of rental payments, good landlord references and a steady income. And many could no doubt pay 3 or 6 months in advance if the option were available.   

So my question is this, why are landlords and letting agencies STILL despite legal precedent discriminating against sick and disabled people? Even Banks and Building societies have reversed the ‘NO DSS’ policies in light of recent court rulings and media pressure.

I am really scratching my head on this because my inevitable conclusion leads me to believe this policy is based purely on prejudice, snobbery and or complete ignorance of recent changes and rulings. 

All the old excuses about 'having to wait for payment' does not apply to ESA or PIP and even UC offers claimants an immediate loan payment, or that old chestnut about 'my lender doesn’t allow it' has been dealt with already, and the DWP has recently changed the rules so rent can be paid direct to the landlord. Landlords can also apply directly for the rent to be paid directly if the tenant falls into arrears by 2 months. 

Before I contact my MP regarding this matter and how to legislate against ALL types of discrimination, I would be grateful if any landlord reading this can offer an explanation as to why they accept students, pets, smokers, part-time workers but NOT sick and disabled tenants claiming out of work benefits. Thanks for reading.  

dimbo61

Where to start we are still in the middle of a pandemic and hundreds of  thousands of people have lost their jobs while even more are still in furlough.
Lots of Landlords are selling in what has become a crazy market.
Housing benefit rates have not kept pace with market rents available in many cities and forget about London which is so expensive that very very few landlords offer properties to HB tenants.
I could list the changes in the last 10 years which have made it difficult to run a rental business.
EPC, GSC, EICR, fit for habitation  standards, Fire safety, cladding on tower blocks, leasehold, ground rent and estate management charges.
Tax changes and the reduction in allowances such as 10% Wear and Tear.
Latest is for LL,s with limited companies who will see Tax go from 18% to 23/25%

[Deleted User]

There was a similar thread the other week. 

https://forums.moneysavingexpert.com/discussion/6252765/local-housing-allowance-renting-in-the-private-rented-sector

SpiderLegs

It’s not clear from your post, have you found properties that are still being advertised as No DSS?

im not sure that the ruling prevented landlords from requiring a minimum income or requesting a guarantor, but I will go check now...

TBH it’s not that unexpected that LLs will continue to impose financial limitations on who they let their properties to and as long as they do so without referencing discriminatory terms I don’t know what can be reasonably done about it.

[Deleted User]

Why the need for more legislation and what would it be?
No. The process is to test allegations in the Court arena. 
You even say that fines were issued.

HampshireH

Lover_of_Lycra said:

There was a similar thread the other week. 

https://forums.moneysavingexpert.com/discussion/6252765/local-housing-allowance-renting-in-the-private-rented-sector

Also the OPs thread. Not sure why we need two.

justworriedabit

dimbo61 said:

Where to start we are still in the middle of a pandemic and hundreds of  thousands of people have lost their jobs while even more are still in furlough.
Lots of Landlords are selling in what has become a crazy market.
Housing benefit rates have not kept pace with market rents available in many cities and forget about London which is so expensive that very very few landlords offer properties to HB tenants.
I could list the changes in the last 10 years which have made it difficult to run a rental business.
EPC, GSC, EICR, fit for habitation  standards, Fire safety, cladding on tower blocks, leasehold, ground rent and estate management charges.
Tax changes and the reduction in allowances such as 10% Wear and Tear.
Latest is for LL,s with limited companies who will see Tax go from 18% to 23/25%

Re OP. Law or not, LL's and LA's are and will get around this and that is the reality on the ground,
LL's, I watch those tv docs re rental properties and what I see is enough to put many off from renting to anyone.
Not sure when it happened but when socail stopped paying directly to LL's, many renters easily fell behind with rents
because of valid reasons and just as many without valid reasons.

We are thinking of buying for cash a couple of rentals when the hols on stamp duty removed poss before subject to VFM.
Then we will only rent via established LA's that have been recommended by family.
We are advised even the max weeks of deposit has gone down but we will go for the max.
We will seek a professional couple/single, no pets, smoking etc and as far as I'm aware that is not against the law. We are both ie me and Mr J learning/preparing to rent out property when he gets his cash.
Ideally we do not want those out of work at the time of rental and ATM not sure how much rent social pays but we will be aiming for the higher rental brackets. We will tell the LA's whom we want and will meet the potential renters and ask questions.

Our family IE those that have rentals always do so via LA's and always go for fully managed and full insurance for rental and legal fees ie eviction notices protection. I may be wrong so stand to be corrected but I think most aforementioned polices do not allow those on certain benefits when taking out the policy - as I said I may be wrong

If any of the above is wrong, I apologise and here to learn, etc but the bottom line - we will only rent via
LA's, take out full insurance as mentioned above and aim to reward T's that keep the place nice and pay rents on time,
or do their best and not take the mick - we will reward them with not rental increases for possibly as long as they rent

As mentioned in the quote - everything is going up, service charges, all other fees, taxes, risks, etc, etc but getting the right T's and going to the right LL's does work but for us, it will be via well established, good LA's possibly not the cheapest but the best out of the bunch out there. As important, no pets, smoking as I've been to people's homes that smoke and or have pets and again if you are happy with this then it is your choice and you pay for the stains/etc.

Btw - LL's pay extra stamp duty as well ranging into the thousands, all in all it is a risk especially if you take a mortgage and a LL can lose everyhting if a T does not pay rents, does not want to move out and trash the place and the LL not only loses the rental but their own property as well, it can happen and I'm sure it has.

David2710

dimbo61 said:

Where to start we are still in the middle of a pandemic and hundreds of  thousands of people have lost their jobs while even more are still in furlough.
Lots of Landlords are selling in what has become a crazy market.
Housing benefit rates have not kept pace with market rents available in many cities and forget about London which is so expensive that very very few landlords offer properties to HB tenants.
I could list the changes in the last 10 years which have made it difficult to run a rental business.
EPC, GSC, EICR, fit for habitation  standards, Fire safety, cladding on tower blocks, leasehold, ground rent and estate management charges.
Tax changes and the reduction in allowances such as 10% Wear and Tear.
Latest is for LL,s with limited companies who will see Tax go from 18% to 23/25%

Thanks for that. Landlords are probably selling up because like me they expect a significant price correction when furlough ends. This makes sense because it will no doubt have an impact on the FTB market in particular when tenants and home owners find themselves on the dole. I agree, key to all this, and the housing crisis in general is that Local Housing Allowance and average salaries have nowhere near kept pace with house prices. And also unlike the US housing market there was little or no correction following the 2008 banking crisis. Having said that I discovered many Studio flats advertised fall well below the LHA rate, so it still doesn't make sense why Landlords disqualify DDS tenants if it's about the shortfall between rent and LHA. Due to the fact there are hundreds of Studios and 1 bed flats in London alone there are obviously Landlords willing to let a property to DSS tenants provided rent is underwritten by a guarantor should the tenant fall into arrears. Thanks again but based on your answer I still cannot see any reason or justification for what is blatant discrimination.  

justworriedabit

[Deleted User] said:

Why the need for more legislation and what would it be?
No. The process is to test allegations in the Court arena. 
You even say that fines were issued.

How would you prove the LL's wanted "no dss"" if it was not written

531063

David2710 said:

So my question is this, why are landlords and letting agencies STILL despite legal precedent discriminating against sick and disabled people? Even Banks and Building societies have reversed the ‘NO DSS’ policies in light of recent court rulings and media pressure.

Because 95% of my tenants who don't pay the rent are on benefits, when you contact your MP ask him to go back to the old system and pay the rent money direct to the LL, then I will start taking on tenants who are paid via benefits.

[Deleted User]

justworriedabit said:

[Deleted User] said:

Why the need for more legislation and what would it be?
No. The process is to test allegations in the Court arena. 
You even say that fines were issued.

How would you prove the LL's wanted "no dss"" if it was not written

Matter for Courts but I should think difficult to impossible. Also think there is no further legislation to strengthen the controls so OP needn't bother with his MP.