An influential private landlords’ group is demanding urgent Government action to tackle discrimination against benefit claimants by buy-to-let mortgage providers.

It follows news that a landlord had her mortgage revoked because she is renting to a benefit claimant. The Residential Landlords Association (RLA) says this matches findings from their own research and this should prompt the Government to end such practices by lenders. David Smith, Policy Director for the RLA said: “With growing numbers of benefit claimants now relying on the private rented sector, it is shameful that many lenders are preventing landlords renting property to some of the most vulnerable in society with little or no justification.

The banks have had long enough to get their house in order. It is now time to take firm action to stop such unjust practices.” The campaign was triggered by Nat West’s refusal to give a buy-to-let mortgage to Helena McAleer, a landlord from Northern Ireland, who wished to release equity on her house after it increased in value. In discussions with the bank, she was told it was their policy not to allow rentals to benefit claimants.

Helena McAleer said the bank expected her to kick someone out of their home simply because of their circumstances. Ms McAleer has since started a petition calling for measures to tackle such practices which clearly discriminate against benefit and Universal Credit claimants. Research carried out for the RLA last year found that 66 per cent of lenders representing approximately 90 per cent of the buy-to-let market do not allow properties to be rented out to those in receipt of housing benefit. In a letter sent to John Glen, the Treasury Minister responsible for banking, the RLA is calling for:

• The Government to use the influence it has in those banks in which it currently has shares to end such discriminatory practices;
• The Financial Conduct Authority (FCA), working with the Bank of England, to undertake a full investigation into the extent of this problem and prepare plans to end it; and
• The Equalities and Human Rights Commission to undertake a review of whether such practices breach equalities law.

By Patrick Mooney, editor