Is It Legal for Scottish Landlords to Exclude Renters Based on Income?

If you’re looking for a home to rent in Scotland, you might worry about whether landlords or letting agents can refuse your application because of your income source or level. This article explores what income-based discrimination means, whether it’s legal in Scotland, and what renters can do if they believe they’ve been treated unfairly.

What Is Income-Based Discrimination?

Income-based discrimination is when a landlord, letting agent, or property owner refuses to rent to someone, or treats them differently, because of their income level or the source of their income (such as Universal Credit, Housing Benefit, or low wages).

Is Income-Based Discrimination Legal in Scotland?

In Scotland, landlords are allowed to consider a renter's ability to pay and may use income requirements as part of affordability checks. However, it becomes problematic if these checks are applied in a way that indirectly discriminates against people because of protected characteristics under the law—like disability or sex—or unfairly targets benefit claimants without good reason.

• There is no law that specifically bans refusing tenants on the basis of income alone.
• But the Equality Act 2010 protects against discrimination related to protected characteristics, and sometimes, strict income policies can result in indirect discrimination.
• Landlords must not have a policy that puts people with protected characteristics at a disadvantage (for example, people with disabilities more likely to have lower income).
• Discrimination against benefit claimants has been found to be unlawful in some cases, especially if it disproportionately affects women or disabled people.

The Scottish Government’s guide to private renting states landlords must comply with equality laws at all stages of letting a property.

What Protections Do Renters Have?

While landlords can carry out affordability checks, they must ensure these do not unfairly discriminate. The main tenancy law in Scotland is the Private Housing (Tenancies) (Scotland) Act 2016, which sets out your rights and landlord obligations. The Act does not specifically ban income-based selection, but all tenancy practices must also comply with the Equality Act 2010.

When Does Income Policy Become Indirect Discrimination?

If an income requirement or refusal to accept housing benefit disproportionately affects certain groups (like single parents, women, or disabled people who may be more likely to receive benefits), this could count as indirect discrimination under the law.

How to Take Action If You’ve Been Discriminated Against

If you think a landlord’s policy is unfair and may break equality laws, there are several steps you can take. The tribunal that handles residential tenancies in Scotland is the First-tier Tribunal for Scotland (Housing and Property Chamber).

Steps to Take

• Ask for Written Reasons: Request that the landlord or letting agent sets out in writing why your application was refused.
• Seek Advice: Contact advice services (see Resources below) to get guidance on whether you may have experienced discrimination.
• Make a Complaint: You can complain to the letting agency (if applicable), and if unresolved, escalate to the Letting Agent Code of Practice: Scottish Government Register.
• Apply to the Tribunal: If you have evidence of discrimination that contravenes the Equality Act, you can apply to the First-tier Tribunal for Scotland (Housing and Property Chamber) using their application forms.

Relevant Official Forms and How to Use Them

• Application to the First-tier Tribunal for Scotland (Housing and Property Chamber):
• Form name: Application in respect of a civil proceedings matter (no specific form number, but available from the Housing and Property Chamber applications page).
• When to use: If your rental application was refused and you believe it was due to discrimination, and advice services confirm you may have a case, you can submit an application for the tribunal to consider your complaint.
• How to use: Complete the application form online or download, attach any supporting written evidence of discrimination, and submit as directed on the site.
• Letting Agent Complaints Form:
• Form name: Letting Agent Code of Practice Complaint Form (via official tribunal site).
• When to use: If you believe a letting agent breached the Letting Agent Code—such as applying potentially discriminatory income rules.
• How to use: Download, fill out, and submit the complaint form with your supporting details and correspondence.

It’s best to seek expert advice before taking action, to ensure you choose the right avenue and gather the necessary evidence.

FAQ: Scottish Renters & Income Discrimination

1. Can a Scottish landlord refuse me because I receive Universal Credit?
   Landlords can ask about income to check affordability, but a flat refusal to consider anyone on Universal Credit may be unlawful if it results in indirect discrimination against protected groups, as covered by the Equality Act 2010.
2. What should I do if a letting agent says 'no DSS' or 'no benefits'?
   Ask the letting agent for their reasoning in writing. If you suspect discrimination, get advice from tenants' rights services and consider reporting the practice to the Council or the First-tier Tribunal if protected characteristics are involved.
3. Is there a specific form to complain about discrimination in renting?
   Yes. The main route is the Application in respect of a civil proceedings matter to the First-tier Tribunal for Scotland. Details and downloadable forms are on the official tribunal applications page.
4. Which tribunal handles discrimination complaints from Scottish renters?
   The First-tier Tribunal for Scotland (Housing and Property Chamber) deals with private tenancy disputes, including unlawful letting practices.
5. Does the main tenancy law in Scotland ban income-based discrimination?
   The Private Housing (Tenancies) (Scotland) Act 2016 does not specifically ban it, but all letting practices must still comply with the Equality Act 2010.

Conclusion: Key Takeaways for Renters

• Income-based renting decisions are legal, but must not result in unlawful indirect discrimination under the Equality Act 2010.
• There are ways to complain or take action if you suspect discrimination—always seek tenant support or legal advice first.
• Scotland’s First-tier Tribunal for Scotland (Housing and Property Chamber) is the correct place to raise formal disputes about letting practices.

Understanding your rights helps you navigate renting in Scotland with confidence and seek fair treatment.

Need Help? Resources for Renters

• First-tier Tribunal for Scotland (Housing and Property Chamber): For tenancy complaints and dispute application forms.
• Shelter Scotland: Free advice and support on discrimination and renting issues.
• Scottish Government Guide for Tenants: Official guidance on private renting, rights, and landlord obligations.
• Citizens Advice Scotland: Housing advice, including on possible discrimination.

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1. Equality Act 2010 (legislation.gov.uk)
2. Private Housing (Tenancies) (Scotland) Act 2016 (legislation.gov.uk)
3. First-tier Tribunal for Scotland Application (housingandpropertychamber.scot)
4. Scottish Government Tenants Guide

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