The government is introducing new rules which agents must abide by, if they are accused of discrimination. And potentially agents face multiple fines of up to £7,.000 at a time.

The Renters Rights Act enhances existing anti-discrimination rules. It will be illegal for landlords to have blanket bans on tenants who receive benefits and this also applies to agents who may use external referencing companies that exclude people on benefits. The Act also prohibits discrimination against tenants with children.

The new law builds on existing protections under the Equality Act 2010, which prohibits discrimination based on protected characteristics such as age, disability, and gender reassignment, though age discrimination in this specific context might require more nuanced handling.

Now the government has gone further and has set out, as part of the Renters Rights Act, what agents must do if they are accused of discrimination.

If there is such a complaint the agency will be contacted by its local council who may serve a ‘notice of intent’. 

This will tell the agency that the council plans to issue a civil penalty for breaking (or ‘breaching’) rental discrimination laws.   

The agency will then have 28 days to reply with evidence that shows that the actions taken were reasonable and that discrimination has not taken place. This is called a ‘written representation’.  

Evidence will include time-stamped copies of communications with the prospective tenants – for example, text messages, voicemail messages, emails, copies of adverts or property listings ;  legal documents such as a property deed, insurance contract or statement of licensing conditions ; and other documents – for example, a brochure showing that the property is part of a retirement community or student accommodation  

If your local council decides that rental discrimination has happened, you or anyone acting on your behalf will be given a civil penalty of up to £7,000. You’ll be sent a ‘final notice’ which will tell you what you owe and when you have to pay it.   

You could still be issued with a civil penalty if the breach was either committed without your consent or knowledge, or because of what the government calls “your neglect.”

In a guide to the new legislation – which comes into effect in May next year – the government gives the example of a landlord who asks a letting agent to put up an advert for a property specifically stating no children are allowed.  Someone reports this to the local council. The council agrees that it is discrimination. The landlord is given a civil penalty of, say, £5,000.

If you are reported again  you could be fined for a ‘continuous breach’ or a ‘repeated breach’ which has occurred more than 28 days after being issued with a civil penalty for it. For example, this could happen if you have not taken down an advert that was reported.   If your local council agrees that a ‘continuous breach’ of rental discrimination has happened, it can issue you with another civil penalty every 28 days.   

The government gives another example.

So a landlord posts an advert saying they will not rent a property to people on benefits. This is reported to the local council and they are issued with a civil penalty of £5,000 for discrimination.  The advert was still online 28 days later, so the council issued a civil penalty for a further £6,000 for a ‘continuous breach’. The landlord then took the advert down.

If there is a ‘repeated breach’ – which means you have committed the same breach on separate occasions within five years – you may be issued with a civil penalty for a ‘repeated breach’, and you will have to pay  up to £7,000 for the new breach  and up to a further £7,000 because you repeated the same type of breach within that five year period.

There are more details of the new law here: https://www.gov.uk/guidance/renting-out-your-property-guidance-for-landlords-and-letting-agents/if-someone-reports-you-for-rental-discrimination