The Property Ombudsman responds to “No DSS” legal victories

Following the legal victories of two tenants who have both won out-of-court settlements against "No DSS" letting agents, The Property Ombudsman (TPO) has issued a reminder to its member agents of their obligations not to discriminate. TPO has also confirmed it will consider obtaining Assured Advice and strengthening its Codes of Practice in the next update to clearly prohibit ‘No DSS’ clauses in rental advertisements. Amanda Staples and Emma Loffler both won out-of-court settlements against "No DSS" letting agents on the grounds of indirect discrimination. Under clause 1e and 1f of The Property Ombudsman’s Code of Practice for Residential Letting Agents, agents are reminded that they must: 1e treat consumers equally regardless of their race, religion or belief, sex, sexual orientation, gender recognition, disability, pregnancy or maternity, or nationality. Unlawful discrimination includes giving less favourable treatment because someone is perceived to have one of these personal characteristics or because they are associated with a person with such a characteristic. 1f take special care when dealing with consumers who might be disadvantaged because of factors such as their age, infirmity, lack of knowledge, lack of linguistic or numeracy ability, economic circumstances, bereavement or do not speak English as a first language. In 2019, TPO handled 881 complaints in relation to agent’s general obligations, specifically relating to 1e and 1f of the Codes of Practice for Residential Letting Agents.  Whilst TPO recognises these are not all linked to “No DSS” cases, the figure still highlights that approximately 17% of all complaints last year were linked to some form of discrimination. For the avoidance of doubt, economic circumstances include tenants who are in receipt of benefits. Katrine Sporle, Property Ombudsman, states: "Whilst rental properties are investments for landlords, they are homes for tenants. To be excluded from a significant portion of the homes available simply because you are in receipt of Housing Benefits cannot be considered as treating consumers equally. Tenants’ perceptions that they have been unfairly discriminated against underpin the significant number of the complaints received.  TPO agrees that adverts which discriminate against would-be tenants in receipt of Housing Benefit should end.  Making sure no one is excluded from applying for the home of their choice will go some way to reducing these complaints." TPO is aware of certain circumstances in which mortgage lenders / insurance providers specifically exclude tenants in receipt of Housing Benefit.  If this is the case, TPO would expect agents to evidence that and an explanation given to prospective tenants on an individual basis.