Income-Based Discrimination: What Welsh Renters Need to Know

There is increasing concern among renters in Wales about landlords refusing to let property to those on benefits or with low income. Understanding whether income-based discrimination is legally permitted can help protect your rights, especially if you receive Universal Credit or Housing Benefit.

What Is Income-Based Discrimination?

Income-based discrimination happens when a landlord or letting agent refuses to consider you for a tenancy solely because of your income source or level—often affecting people who receive benefits such as Universal Credit, Housing Benefit, or disability payments.

Is Income-Based Discrimination Legal in Wales?

While there is no specific Welsh law that outright bans landlords from refusing tenants on grounds of income, blanket bans (where landlords or agents refuse all those on benefits) may breach the Equality Act 2010 if they indirectly discriminate on the basis of disability, sex, or another protected characteristic.^[1] If you believe you have been refused solely due to being on benefits, you may have grounds to challenge the decision—especially if you can show this has a discriminatory effect.

How the Law Applies to Welsh Tenancies

Most tenancies in Wales are now 'occupation contracts' following the Renting Homes (Wales) Act 2016.^[2] The law does not include an explicit ban on income-based discrimination in its tenancy provisions. However, agents and landlords should follow fairness and anti-discrimination standards as outlined in the Equality Act 2010, which also applies in Wales.

What Can Renters Do If They Experience Income-Based Discrimination?

If you feel you have been treated unfairly because of your income source, especially if you receive benefits or support, there are steps you can take:

• Gather evidence: Save emails, adverts, or messages that show you’ve been turned away due to your income.
• Ask for a written explanation: Politely request reasons for being refused.
• Contact Rent Smart Wales: Report the landlord or agent if you believe they are acting unlawfully. Rent Smart Wales oversees landlords and agents in Wales. Rent Smart Wales (Official).
• Consider making a formal complaint to the local council or through the relevant ombudsman service.
• If discrimination may have occurred, you may also be able to make a claim under the Equality Act 2010.

If you want to escalate your complaint, you may need to file an application to the Residential Property Tribunal (Wales), which deals with tenancy and housing disputes.^[3]

Official Forms and How to Use Them

• Complaint to Rent Smart Wales (No standard form):
  If you believe a landlord or agent is acting unlawfully, you can submit a complaint to Rent Smart Wales. For example, if an agent's advert says 'No DSS', you can fill the online form with details and your supporting evidence.
• Equality Act Discrimination Claim (Form N1):
  To start a discrimination claim in the County Court, use Form N1 Claim Form. Example: If you can demonstrate a letting agent's refusal to consider you was indirect discrimination linked to disability, you use Form N1 to initiate a civil case. Download Form N1 Claim Form.

Understanding Your Rights Under Tenancy Law

Welsh renters are protected under the Renting Homes (Wales) Act 2016, which governs most residential contracts from 1 December 2022 onwards.^[2] While this law does not specifically prohibit landlords from considering income as a factor, all actions must comply with the Equality Act.

Some letting agents or landlords may still include phrases like 'No DSS' or 'Professionals Only' in advertisements. In many cases, these adverts can be challenged as indirect discrimination, particularly where they put disabled people or women at a particular disadvantage, as found in several court rulings.^[4]

What If a Decision Is Not Discriminatory?

Landlords may ask for evidence of income or references to check affordability, which is allowed. Refusals based purely on inability to afford rent, rather than income source itself, do not usually amount to unlawful discrimination. It is about how reasons are applied and whether protected groups are unfairly disadvantaged.

Summary

In summary, income-based discrimination—especially blanket bans on benefit recipients—can be challenged in Wales if it indirectly discriminates against protected groups. However, there is no explicit statutory prohibition on landlords considering income. If in doubt, document your experiences and seek advice from an appropriate support body.

Frequently Asked Questions

1. Can a landlord in Wales refuse to rent to me because I’m on Universal Credit?
   They may refuse, but outright blanket bans can be challenged if they result in indirect discrimination under the Equality Act 2010. Always keep records and seek advice if you experience this.
2. Is it illegal for advertisements to state 'No DSS' in Wales?
   Such adverts may breach the Equality Act 2010, especially where they create disadvantage for protected groups. You can report such adverts to Rent Smart Wales or your local council.
3. Which tribunal handles cases involving discrimination by landlords in Wales?
   The Residential Property Tribunal Wales deals with housing disputes, including some discrimination matters.
4. What forms should I use if I want to take legal action?
   You can use the Form N1 Claim Form to begin a discrimination claim in the County Court, or submit a complaint online to Rent Smart Wales for regulatory concerns.
5. What if my landlord simply wants proof that I can afford the rent?
   Asking for proof of affordability is legal. It only becomes an issue if the landlord uses blanket policies that unfairly exclude people on benefits without considering individual circumstances.

Conclusion: Key Takeaways for Welsh Renters

• Income-based discrimination is not directly banned by law in Wales, but indirect discrimination could breach the Equality Act 2010.
• Keep written evidence of any refusals or discriminatory language used by landlords or letting agents.
• If you believe discrimination has occurred, seek advice quickly and consider making a complaint or taking legal action if advised.

Knowing your rights and where to seek help is the best way to respond if you face possible income-based discrimination as a renter in Wales.

Need Help? Resources for Renters

• Rent Smart Wales – Licensing, complaints, and renter support
• Residential Property Tribunal (Wales) – Tenancy and housing dispute tribunal
• Citizens Advice Wales – Housing Advice
• Welsh Government Housing Information

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1. Equality Act 2010 (legislation.gov.uk)
2. Renting Homes (Wales) Act 2016
3. Housing and Property Tribunal (gov.uk)
4. Equality Act 2010 Guidance

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