Beyond the Courts: The Mandatory Role of the Private Rented Sector Ombudsman
- DNB Future Properties
- Jan 16
- 7 min read
Updated: Jan 23
Beyond the Courts: The Mandatory Role of the Private Rented Sector Ombudsman. The Renters' Rights Act 2025 significantly strengthens protections against discrimination, signalling a zero-tolerance approach to unfair treatment in the private rental sector.
While existing legislation like the Equality Act 2010 already prohibits discrimination based on protected characteristics (e.g., race, religion, sex, disability), the new Act closes loopholes and specifically targets certain discriminatory practices common in property advertising and tenant selection.
The key aim is to ensure that all eligible tenants have fair access to rental properties and are treated equally throughout the tenancy lifecycle.
Targeted Discrimination Protections
The Act focuses on two main areas where discrimination often occurs: advertising and tenant profile restrictions.
1. Bans on Blanket Bans
The Act introduces new clarity and penalties for the practice of imposing blanket bans, which have often been used to illegally screen out protected groups. The focus areas include:
• Pets: Landlords will now have to have a "good reason" to refuse a tenant's request to keep a pet. The Act establishes the "right to request a pet" in most tenancies, meaning a blanket "No Pets" policy will generally be invalid. Landlords can, however, require tenants to take out specific pet insurance to cover damage to the property.
• Families and Benefits: The Act strengthens measures against the discriminatory use of "No DSS" (referring to tenants receiving housing benefit/Universal Credit) or "No Families" clauses in advertising and selection. While not an explicit criminal ban on the phrase itself, courts and tribunals are increasingly treating this as indirect discrimination, particularly against women, disabled people, and minority groups who are statistically more reliant on benefits.
• Agents' Screening: Landlords remain legally liable for the discriminatory actions of their letting agents. If an agent uses discriminatory screening criteria (even if not explicitly requested by the landlord), the landlord can still face penalties.
2. Streamlined Process for Redress
For tenants who believe they have been discriminated against, the Act strengthens the pathways for seeking justice:
• Ombudsman Complaints: The new Private Rented Sector (PRS) Ombudsman (as discussed in the previous post) will be mandated to handle certain complaints related to discriminatory conduct, offering tenants a quicker, cheaper route to resolution than the county court for issues of service and conduct.
• Civil Penalties: Local authorities will be empowered to issue civil penalty notices where they find clear evidence of a breach of discrimination law by a landlord or agent, supplementing the existing ability for tenants to bring a claim under the Equality Act 2010.
⚖️ Landlord Liability and Penalties
Under the Equality Act 2010, discrimination falls into four main categories, and landlords can be held personally liable for any of them:
Type of Discrimination:
Direct Discrimination: Treating someone less favourably because of a protected characteristic. An Example of Illegal Practice is Refusing to rent to a prospective tenant because they are from a specific ethnic group.
Indirect Discrimination: Having a policy that applies to everyone but disadvantages people with a protected characteristic. An Example of Illegal Practice is Advertising "No DSS" which disproportionately affects disabled people and single mothers.
Harassment: Unwanted conduct related to a protected characteristic that violates dignity. An Example of Illegal Practice is Making derogatory comments about a tenant's religion or sexual orientation.
Victimisation: Treating someone badly because they made a discrimination complaint. An Example of Illegal Practice is Issuing a retaliatory eviction notice after a tenant complains about being harassed.
Penalties for a breach of the Equality Act are determined by the County Court and can result in unlimited compensation awards for the tenant, covering financial loss and damages for injury to feelings. The introduction of civil penalties via local authorities and the Ombudsman provides additional, faster mechanisms for enforcement.
Your Action Point: Review Policies and Training
The best defence against discrimination claims is to operate with robust, consistent, and legally compliant policies that focus only on financial viability and suitability, regardless of background.
• Review Your Advertisements: Scrutinise all advertising copy, screening questions, and tenancy rules to ensure they cannot be interpreted as discriminatory against any protected group.
• Focus on the Core: Base all selection decisions purely on verifiable factors: Affordability (income/credit checks, where legal) and Reliability (references).
• Agent Communication: If you use an agent, formally communicate that they must not use any discriminatory language or practices, particularly those involving blanket bans on benefits or pets, and that you will not indemnify them for any breach.
The Renters' Rights Act 2025 is not merely an update to housing law; it is a profound declaration that fair access to housing is a fundamental right. By strengthening protections and clarifying enforcement mechanisms, this legislation directly tackles the subtle and overt biases that have historically excluded tenants, particularly those relying on benefits, those with families, or those with pets.
The new focus on the Private Rented Sector (PRS) Ombudsman and the local authority's power to issue civil penalties introduces a potent new framework for accountability and rapid redress. For landlords and agents, the message is clear: the era of blanket bans and discriminatory screening is definitively over.
Your final takeaway must be proactive compliance. Now is the time to not just meet the minimum legal standard, but to champion diversity and fairness in your operations.
By focusing selection purely on affordability and reliability, and ensuring your agents are fully trained and compliant, you not only mitigate the risk of unlimited court-ordered compensation under the Equality Act 2010 but also contribute to a stronger, more equitable rental market for everyone.
Embrace these changes to secure your reputation and build a sustainable, legally sound portfolio based on true fairness.
📑 Renters Rights Act 2025: Full Blog Series Index
This is one of a 10-part series exploring the Renters Rights Act 2025. Check out the rest of the posts below to understand all the changes coming to the private rented sector.
The Renter’s Rights Act 2025 formally known as the Renters Reform Bill has officially become law, bringing significant changes to the private rented sector in England.
The Landlord's Essential Guide to the Renter's Rights Act 2025 formally known as the Renter’s Reform Bill: 10 Critical Q&As. The Renters' Rights Act 2025 is a landmark piece of UK legislation designed to fundamentally rebalance the power dynamic in the private rented sector.
Read about how the end of 'no-fault' evictions will fundamentally change tenancy agreements and provide tenants with greater security of tenure.
Read about the new and reformed mandatory and discretionary grounds that landlords must now use when seeking to regain possession of their property
Discover the move away from fixed-term tenancies and how all new tenancies will now operate as periodic tenancies from day one.
We detail the new measures introduced to prevent landlords and agents from encouraging or participating in unfair rent bidding wars among prospective tenants.
Understand the new rule that restricts landlords from increasing rent more than once every 12 months, providing tenants with more financial certainty.
Explore the new legal duties placed on landlords to prevent discrimination against certain groups, particularly those receiving benefits or with children.
The Renters' Rights Act 2025 is not just about evictions; it’s about property quality. For the first time, the Decent Homes Standard (DHS), long applied to social housing, will be legally extended to the private rented sector.
We look at the new rules that make it easier for tenants to keep pets, requiring landlords to have a reasonable excuse to refuse a request.
Read about the role of the new Ombudsman and how it will provide a mandatory, impartial route for tenants and landlords to resolve disputes outside of court.
Read about the creation of the new portal that will require all landlords to register their properties and comply with certain standards to operate legally.
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