New law makes benefit discrimination by private landlords and letting agents illegal

A new law came into force on 1 May 2026 making it illegal for a private landlord or letting agent to discriminate against anyone who gets benefits or has children, according to Shelter Scotland¹. The charity says this gives everyone who rents privately stronger protection against benefit discrimination¹. Its guidance states that the content applies to Scotland only, and that housing laws differ between Scotland and England¹.

Shelter Scotland says refusing to rent to people who get benefits indirectly discriminates against women and disabled people, who are more likely to get housing-related benefits, and that sex and disability are protected characteristics under the Equality Act 2010¹. It adds that people who are not women or disabled can still challenge benefit discrimination¹.

The guidance lists practices it treats as discrimination, including adverts saying "no Housing Benefit", "no Universal Credit" or "professionals only", and letting agents telling applicants the landlord does not accept people getting benefits¹. It also covers affordability checks: automatically failing a check because of benefit receipt, using referencing companies that exclude benefit claimants, or requiring a guarantor from a benefit claimant where a non-claimant with a similar income is not asked for one¹.

On mortgage and insurance terms, Shelter Scotland says terms preventing landlords from renting to people who get benefits are no longer permitted, and that terms in a current mortgage agreement are not enforceable¹. Terms in a current insurance policy may still be enforceable, but only until the policy ends or reaches its renewal date, after which they will not be enforceable¹.

The same source sets out steps for challenging a refusal, including writing a complaint asking for a reply within five working days, and, for complaints about a letting agent, applying to the First-tier Tribunal for Scotland (Housing and Property Chamber)¹. It says letting agents must follow the letting agent code of practice, and that rules 22, 42 and 51 are specifically about discrimination¹. It adds that there are time limits for raising a claim¹.

Separately, the Renters' Rights Act 2025 makes significant changes to the private rented sector in England from 1 May 2026, according to Business Debtline². Those changes include restricting rent increases for private tenants to once a year from 1 May 2026, and a requirement for landlords to give tenants and anyone named on the tenancy a government-produced information sheet before 31 May 2026². Business Debtline also notes that since 27 December 2025 councils have increased investigation powers under the Act². Its guidance covers England and Wales and states that different advice applies in Scotland².

Why it matters for households

For private tenants in Scotland who receive benefits, including the Universal Credit housing element or Housing Benefit, the change means a refusal based on benefit receipt is unlawful from 1 May 2026¹. The same applies to households with children¹. Where a landlord's mortgage terms barred letting to benefit claimants, those terms cannot be enforced, so they cannot be used as a reason to refuse a tenancy¹. Insurance terms may still bite until the policy ends or renews¹.

The practical effect is on the point of application: adverts, affordability checks and guarantor demands are all covered by the guidance¹. Tenants who believe they have been refused can complain in writing and, for letting agents, take a case to the First-tier Tribunal for Scotland¹. Shelter Scotland says there are time limits for claims¹.

In England, the changes taking effect from 1 May 2026 concern rent increases and information landlords must provide, rather than benefit discrimination². The two sets of rules differ by nation, and the Scottish guidance does not apply in England¹.

What happens next

Landlords in England must give tenants and anyone named on the tenancy a government-produced information sheet before 31 May 2026². Where a landlord has served notice and intends to pursue possession, court proceedings must begin by the earlier of 31 July 2026 or the expiry of the notice². No further dates on the Scottish law have been reported¹.