News
Property Ombudsman renews warnings to agents about 'No DSS' adverts after tenants' victories
Thursday 5th March 2020
The Property Ombudsman has renewed its warnings to agents after two tenants won out-of-court settlements against 'No DSS' letting agents.
TPO says that agents are reminded that they must not discriminate.
TPO has also said it will strengthen its Code of Practice to prohibit 'No DSS' clauses in rental adverts.
As reported by EYE, Amanda Staples and Emma Loffler both won out-of-court settlements in cases backed by Shelter, where they successfully argued indirect discrimination.
Yesterday, a local newspaper carried a report about Amanda Staples naming well-known agency Thomas Morris, saying that it barred her from renting a property, leading to a 13-month legal battle which ended in January this year.
The paper quotes managing director Simon Bradbury, who said: "We regret the distress to Ms Staples. It was an isolated incident following an employee's misunderstanding of a rent guarantee insurance and associated credit reference criteria.
"We have subsequently introduced new training and processes to ensure that an incident of this kind is not repeated and remain committed to treating all of our customers fairly and to making sure that all tenant applicants have equal access to view any properties available through us."
It is understood that neither the Staples nor Loffler case were the subject of resolutions at TPO, which last year handled 881 complaints about agents allegedly discriminating against consumers, and says that about 17% of all complaints last year were linked to some form of discrimination.
Ombudsman Katrine Sporle said: "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."
She said that TPO is aware of certain circumstances in which mortgage lenders and insurance providers specifically exclude tenants in receipt of housing benefit.
She said that if this is the case, TPO would expect agents to evidence that and an explanation given to prospective tenants on an individual basis.
The current TPO code states under clauses 1e and 1f that agents must treat consumers fairly regardless of factors including race, religion, sexual orientation, gender, disability, pregnancy or nationality.
The code also warns that special care must be taken when dealing with consumers who might be disadvantaged because of a number of factors, including their economic circumstances.
Here at Affinity our properties are available for all tenants to apply for regardless of how their income is derived. Our selection criteria is based on affordability followed by background references.