I was just wondering why is open rent still allowing a no DSS option. The laws changed in September 2024 the landlords and estate agents are no longer allowed to refuse dss.
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Are you referring to the notice on property details which specifies if DSS/LHA Covers Rent?
Anyone can be refused on the basis of affordability, admittedly this only acts a guide to landlords as clearly some of those on benefits may well be able to afford rent through other sources of income if the housing allowance alone does not cover it.
The flag Iāve highlighted will change and read āDSS income acceptedā when the LHA rate meets the rent requirements.
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Rental agencies are not exempt from the UKās ban on āNo DSSā policies. The law applies to both landlords and letting agents. It is illegal for them to refuse to rent to tenants solely based on their reliance on housing benefits.
While OpenRent may still allow landlords to specify their preferences regarding DSS tenants, itās crucial to note that this doesnāt necessarily reflect the legality of such preferences. Itās possible that OpenRent is in the process of updating its platform to fully comply with the new regulations.
I should also add I do not practice law so perhaps if there are any links to why we think this is legal maybe we should look at them as in my mind the original post is a very good question as thereās no specific timeframe set by the government for agencies to implement these changes. However, they are expected to comply with the new regulations as soon as possible.
Itās important to note that while some agencies may take longer than others to update their systems and processes, the law is clear that discriminating against tenants based solely on their reliance on housing benefits is illegal and I am sure Open Rentās substantial legal team is all over it as will their compliance officer etc.
If not, they should take a look as we may be all wrong, but worth checking.
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I cant see that Openrent has a āNo DSSā option?
Are you referring to the option to indicate whether the DSS/LHA amount covers the monthly rental? This option is not a ban on DSS/LHA applications.
This is something different to a āNo DSSā policy. The current option on Openrent allows landlords to indicate whether the monthly rent exceeds the DSS/LHA limits. The benefit to applicants on housing benefit is they know upfront whether they are looking at a property the can afford or not.
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A very good point as well Martin, so I guess it comes down to how confident landlords and legal teams are on proving the difference to a āNo DSSā policy and my fear for OpenRent is that if these cases arise then do insurance premiums reflect the rise in claimsā¦not sure but as a landlord I do always check my legal position and OpenRent will as well of course.
For the benefit of those who are unaware, the system was modified by openrent in advance of the change of law.
This has received close scrutiny and I expect openrentsā extensive legal team has paid close attention to the details and has met their legal obligations.
Nowhere does it say that DSS is not accepted, and a tenant can still apply for a property even if the LHA benefit does not meet the rent. It is advising both tenant and landlord of key information early on and would allow tenant to back up the application with details of how affordability would be met.
Itās good that the system is intelligent enough to know the actual payment rate of each LHA and accounts for this.
One area for consideration perhaps is if/how the LHA rate changes based on whether the application is single or joint as clearly joint application could result in a greater allowance. I donāt think the system caters for this.
The term āDSS income acceptedā needs to be clearer, it suggest that DSS income might not be accepted.
Great point Mark and certainly is pertinent but if I have understood the original post and valid concern correctly it is whether if a rental agent (OpenRent) enables a tenant preference that disallows DSS/LHA covers rent, they would be acting legally.
No, it is not legal for a rental agent to enable a tenant preference that disallows tenants who rely on DSS/LHA to cover their rent. This practice is considered discriminatory and is against the law in the UK.
The law prohibits discrimination against tenants based on their source of income, including housing benefits.
Rental agents are obligated to comply with this law and cannot facilitate or encourage discriminatory practices so from my perspective the original post raising the question was bang on.
Here is a link to relevant information: Guide to the Rentersā Rights Bill - GOV.UK
Quote āā¦Make it illegal for landlords and agents to discriminate against prospective tenants in receipt of benefits or with children ā helping to ensure everyone is treated fairly when looking for a place to liveā¦ā
So it boils down to the OpenRent extensive legal department fighting a case for discrimination if somebody else picks up on this and of course as an insurer I would not want to charge a low premium for such a high risk so probably involves procurement as well when the current insurer raises their premium.
I am in agreement:-
I hope and beleive that Openrent do not encourage or allow this practice.
What I believe is inaccurate is the original posting:-
There is not a āNo DSS optionā available to landlords on Openrent (not that I can see).
I have not tried it (or would I) but I suspect that any listing description quoting the terms āNo DSSā would not be allowed as part of Openrent / Rightmove / Zoopla BAU review when posting adverts.
For the reasons stated Connie, I think your curiosity has done us all a favour as yes very valid to bring this to the front of every landlord and every rental agencies mind, hence thank you for sharing it.
Oh I must have misunderstood Markās screen shot where the tenant preference signalled to me a discrimination against DSS.
Anyway not a lawyer and I am sure like you say OpenRent would never act illegally, but I am curious as to whether it is legal to say you have a preference for not having DSS tenants as that illustration clearly shows at the moment and if removed we can still refer to it in other ways so that these posts make sense.
Like I say clear to me and clearly a valid question of legality if questioned by others. I will do some research for us if I have time tomorrow as curious as to who and how a person would question this legally.
The Renters Rights Bill is not current legislation, so it appears to have been misquoted.
Incorrect as far as any misquote and on the subject of the legislation, it will likely not be passed by Parliament until 2025. The question was around the preference being quoted and then the legality of it.
The facts remain the same and as I said even if the law had changed yesterday OpenRent would still be given time to change what needs to be changed and I am sure they will.
I just thought Connieās curiosity on why it was still there was valid as it sparked friendly conversation. Who misquoted and where is that mis quote as I hope nobody thought the link to guidance was a link to legislation.
I wonāt post that research as will probably confuse and cause digression off topic. Interesting question though.
I donāt get it, surely the LL should know if the rent is covered by UC before they put it on market? Why would they ask tenant to give opinion on this? So the screening question is redundant anyway. If you donāt know basics like the local UC rates, how can you price your rent?
I base my rent requirement on what comparable properties are letting for, or the market value. What the LHA rate is has no bearing on my pricing. This is always way below market rate in the areas I have property.
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You donāt even check? Even to know if what people are telling you is true? In any case, you agree that the screening question is redundant.
i have never asked UC rates in 40 years . I ask agent what rent should be. That is it . Who can afford it is the key.