Tenant selection changed more fundamentally on 1 May 2026 than almost any other part of the letting process, and habits that were completely normal for decades are now unlawful or restricted. This guide covers what actually changed, and how to build a selection process that's genuinely fair, consistent, and compliant with the current rules.
Figures below reflect the Renters' Rights Act 2025 and published 2026 UK landlord compliance guidance, current to mid-2026. This is general information, not legal advice; a solicitor or letting agent should review your specific advertising and selection process.
1. What actually changed on 1 May 2026
Three specific practices that were common, even routine, before the Renters' Rights Act 2025 took effect are now either banned outright or heavily restricted: refusing applicants because they receive benefits or have children, selecting a tenant based on who offers the most money above the advertised rent, and refusing a pet request without good reason. None of these were necessarily illegal before 1 May 2026; all three now carry genuine legal and financial risk if ignored.
2. The discrimination ban, direct and indirect
Since 1 May 2026, it's unlawful to refuse a tenancy, or make an applicant less likely to secure one, solely because they receive benefits (Universal Credit, Housing Benefit, Pension Credit, and similar) or because they have, or would have, children living at the property. This covers direct "no DSS" policies, and it also covers indirect practices: filtering rules, standard scripts used when handling enquiries, or even a referencing provider's own criteria that has the same effect. Local authorities can issue civil penalties for breaches, with statutory guidance setting a starting point of £6,000, rising for continuing or repeat breaches. This doesn't mean you can't set clear affordability or referencing criteria, it means those criteria need to be applied consistently to every applicant, not used as a proxy to exclude people on benefits or with children.
3. The rental bidding ban
Landlords and agents must now advertise a single, set rent, and are banned from accepting, or even encouraging, offers above that published figure. Choosing a tenant based on who's willing to pay the most, a practice that became increasingly common in competitive rental markets, is no longer a lawful part of the selection process. If you're reviewing your advertising and application process, this is genuinely worth checking specifically, since older listing templates or agent scripts may still invite offers without realising this is now prohibited.
4. The new pet request right
Tenants now have the right to formally request permission to keep a pet, and a landlord can't refuse unreasonably. Each request needs considering individually, in writing, with a landlord generally expected to respond within a set number of weeks, commonly cited as around 28 days, sometimes extended if further information is genuinely needed. Fair grounds for refusal do exist, for example a property genuinely unsuitable for the specific animal, but a blanket "no pets" policy applied without considering the individual request is no longer defensible. You also can't charge a higher deposit or require pet insurance as a condition of granting permission, though asking a tenant to arrange their own pet insurance voluntarily remains reasonable.
5. Guarantors: still allowed, worth using consistently
Landlords remain free to require a guarantor where affordability or a limited credit history is a genuine concern, this hasn't changed. It's worth being aware that guarantor requirements can still effectively block some applicants, particularly students, international applicants, or anyone without an established UK rental history, from securing a tenancy even where they'd otherwise be a reasonable tenant. Applying a guarantor requirement consistently, based on a clear affordability threshold rather than case-by-case discretion, keeps the practice both fair and defensible if it's ever challenged.
6. Holding deposits
A holding deposit reserves the property while you carry out referencing and other pre-tenancy checks, and is capped at one week's rent. It should be clearly documented, including what happens to it if the application is successful (typically put toward the first month's rent or the deposit) and what happens if it isn't, since disputes over holding deposits are a genuinely common source of early friction with prospective tenants.
7. Building a fair, defensible process
- Set clear, written criteria in advance, covering affordability, referencing standards, and when a guarantor is required, rather than deciding case by case.
- Apply the same criteria to every applicant, so a decision can be explained and justified consistently if it's ever questioned.
- Reference properly, covering income, employment, previous landlord history, and credit record, rather than relying on first impressions from a viewing.
- Complete Right to Rent checks on every adult occupier before the tenancy starts. Our Landlord Professional Toolkit covers this alongside the wider compliance calendar.
- Keep records of how each application was assessed and why, since this is exactly the documentation that protects you if a decision is ever challenged as discriminatory.
8. Frequently asked questions
Can I still refuse tenants who receive benefits in 2026?
No. Since 1 May 2026, it's unlawful to refuse a tenancy, or make an applicant less likely to secure one, solely because they receive benefits or have children. This covers direct policies like "no DSS" and indirect practices too, such as filtering rules, scripts, or a referencing provider's own criteria. Local authorities can issue civil penalties, with statutory guidance setting a starting point of £6,000 per breach.
Can I accept a higher offer than the advertised rent?
No. Landlords and agents must advertise a set rent, and are banned from accepting or even encouraging bids above that published price. Choosing a tenant based on who offers the most money is no longer a lawful part of the selection process.
Do I have to allow a tenant to keep a pet?
You can't refuse a pet request unreasonably. Tenants now have the right to ask permission to keep a pet, and a landlord must consider each request individually and give a valid reason if declining, generally responding within a set number of weeks. You also can't charge a higher deposit or require pet insurance as a condition of granting permission.
Can I still require a guarantor?
Yes, landlords remain free to require a guarantor where affordability or credit history is a genuine concern. It's worth being aware that guarantor requirements can still effectively exclude some applicants, such as students or those without a UK rental history, so this should be applied consistently rather than used selectively.
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