New rules banning discrimination against tenants with children or those receiving benefits will come into force in Wales on 1st June.

From that date, landlords must not deter these households from enquiring about a property, refuse or restrict their access to viewings or property information, or exclude them from entering into a tenancy. 

However, they will be able to consider applicants’ individual circumstances to decide whether a property is suitable, for example a landlord might decline to rent a single room in an HMO to a family if the accommodation is clearly unsuitable for family living, according to the NRLA.

The Act also makes clear that the ban does not prevent affordability checks, meaning that landlords can still take income into account when deciding whether someone can afford the rent.

Changes

The changes are coming in under the Renters’ Rights Act and although this primarily affects tenancies in England, elements of the Act, such as this anti-discrimination rule, will apply to Welsh landlords. In England, the rules take effect from 1st May.

Landlords in Wales will need to inform their tenants in writing by 14th June that there has been a variation to the terms of their occupations contract. This can be done either by providing an updated version of the contract to tenants or serving them with a statement of variation setting out the new terms.

The Guild of Residential Landlords says the key is individual assessment rather than category-based exclusion.

Advises

It advises landlords and agents to update adverts and marketing templates, remove any wording that suggests a blanket ban, avoid screening questions that function like a blanket ban such as ‘Do you claim benefits?’ unless they have a clear, lawful reason and can justify it.

It adds: “The Act also tackles clauses in superior leases, mortgages and insurance that try to force landlords to exclude children or benefits claimants (with some limited insurance-related exceptions and timing rules for insurance). If you've ever been told 'the insurer/mortgage says no…', this is the moment to review those documents and talk to the provider.”

Both the NRLA and Guild will update their occupation contract templates and provide a statement of variation for members to use ahead of the change.

‍