This website uses cookies to ensure you get the best experience on our website, read about our cookie policy.

CMA guidance update on benefits blanket bans

Article Posted - 8th October 2019

The Competition and Markets Authority (CMA) have updated their guidance on consumer protection law for letting professionals with specific consideration for contractual terms that affect benefit recipients.

The guidance confirms that mortgage terms which prevent landlords from letting to benefit tenants should be disclosed to would-be tenants under the basis that this constitutes material information. However, it confirms that claiming that such a term exists when this is not the case would be deemed as misleading.

This update comes on the back of Government efforts to address the blanket ban on tenants in receipt of benefits. The NLA attended a roundtable hosted by the previous Minister of State for Housing and Homelessness, Heather Wheeler MP, and highlighted the need to address the underlying issue of affordability caused by the long-standing freeze on Local Housing Allowance.

Our advice to landlords has reiterated the need to determine the suitability of each tenant on a case-by-case basis. In doing so, landlords can make informed decisions based on affordability as opposed to pursing blanket bans. This approach has been endorsed by Rightmove and Zoopla and full details of the guidance can be accessed here.

What can you do:

Landlords are encouraged to familiarise themselves with our guidance. For members, services such as NLA Tenant Check are available at a discount to help arrive at informed decisions regarding your would-be tenant.

Join the NLA

The NLA is the UK's leading association providing support for private residential landlords, serving over 40,000 members nationwide. New landlords join the NLA for advice, information and guidance and to keep up-to-date with fast changing laws and regulations.

Join today and receive instant access to a wide range of key landlord services, award-winning resources and exclusive supplier discounts.

Become a member