While it may feel that this comes from an unfair stigmatisation or prejudice held by the landlord, this is usually actually because a landlord’s mortgage agreement does not allow them to rent to tenants on income support, so they legally cannot allow you to rent their property, explains The Mirror.
However, some still describe the practice as discriminatory, especially given that nearly a million households in the private rental sector do require housing benefit to help pay for their accommodation.
Now Metro Bank has become the next in the line of major lenders that has removed this from their Buy-To-Let mortgage agreements, following Natwest, who did the same in March of this year. Likewise, property search sites have also cracked down on listings that contain these phrases.
Housing minister Heather Wheeler described the practice as creating a ‘hostile environment’ for tenants receiving Universal Credit, explaining: Regardless of financial circumstances, everyone should have the same opportunity when looking for a home and I have been determined to end the discrimination those on benefits face.”
It was as part of a review commissioned by the government and the likes of housing charity Shelter that Metro Bank was prompted to review and understand how there policies affected real tenants.