From 1 May 2026, insurance terms that require a landlord to refuse tenants who receive benefits, or tenants with children, are of no effect for any policy taken out or renewed on or after that date. Mortgage terms that do the same stopped having effect on 1 May 2026, whenever the mortgage was agreed. Refusing a tenant because they receive benefits is now unlawful discrimination in England and Wales.
So the old question, "can I get landlord insurance if my tenant is on benefits?", has a simpler answer: you shouldn't have to choose. What still matters is how the property is let, how tenants are referenced, and what your rent guarantee and legal expenses cover actually require. This guide explains the law and what to check.
What the Renters' Rights Act says
Three sections of the Renters' Rights Act 2025 deal with children and benefits:
Section 35 makes terms in an assured or regulated tenancy that ban tenants from being benefit claimants, or from having children live with or visit them, of no effect. There are narrow exceptions.
Section 37 makes the same kind of term in a mortgage of a dwelling of no effect, from 1 May 2026.
Section 38 makes the same kind of term in an insurance contract of no effect, but only for contracts entered into or extended on or after 1 May 2026.
On top of that, landlords and agents must not take steps intended to make someone less likely to rent because they receive benefits or have children. That includes refusing viewings or advertising "no DSS".
The one temporary exception
Government guidance explains that if a property is covered by an insurance contract signed before 1 May 2026 that contains a term preventing occupation by benefit claimants or children, that term can still be relied on until the policy ends or is renewed, whichever comes first. After that, it falls away.
In practice this means any "no benefits" condition in a landlord policy has a shelf life that ends at your next renewal. If you have one, don't renew on the same terms without asking about it.
What counts as benefits
The government's guidance gives a broad list, including Universal Credit, Housing Benefit, Jobseeker's Allowance, Personal Independence Payment, Employment and Support Allowance, State Pension and Pension Credit, Council Tax Support, Child Benefit and Carer's Allowance. The definition in the Act covers payments under the main social security laws.
What insurers can still ask
Insurers can still price and underwrite on genuine risk factors. Expect questions like:
How is the property let? A single household, sharers, students, an HMO or a short let.
Is it licensed where the council requires it?
Is it managed by you or an agent?
How are tenants referenced? For rent guarantee, the referencing standard matters more than the source of income.
Is the property occupied, and is it in good repair?
What they can't do, under a policy entered into or renewed from 1 May 2026, is require you to refuse a tenant because they receive benefits.
Rent guarantee for tenants on benefits
Rent guarantee policies usually set a referencing standard: credit checks, affordability and previous landlord references. Historically, some excluded tenants whose rent was paid through benefits.
Points to check:
Affordability tests. Some insurers measure affordability against income including benefits. Ask how the policy treats benefit income.
Guarantors. A guarantor may help a tenant meet the referencing standard. You can still ask for one, but you can't refuse a tenant because they're on benefits.
Housing payments direct to you. If Universal Credit housing costs are paid direct to the landlord (a managed payment), keep the evidence. It helps with any claim.
Universal Credit delays. For the ground 8 rent arrears threshold, courts must ignore arrears that exist only because a Universal Credit payment the tenant is entitled to hasn't been received yet. Your rent guarantee policy may have its own conditions on this, so read them.
Our rent guarantee insurance guide explains these policies in full, and our guide to what to do when a tenant isn't paying rent covers the section 8 route.
Council and housing association placements
Some landlords let through council schemes or to housing associations, sometimes on a lease or management agreement rather than directly to the tenant. If that's you:
tell your insurer who your contract is with, and on what terms,
check whether the scheme provides its own guarantees or repairs commitments,
check that your liability and legal expenses cover fits the arrangement.
These arrangements vary a lot, so we'd check which insurers on our panel will write the specific arrangement.
Mortgage terms
If your buy-to-let mortgage had a condition against letting to benefit claimants, section 37 means it has had no effect since 1 May 2026, regardless of when the mortgage was agreed. Lenders can still have other conditions, such as tenancy type and minimum rent.
Practical steps for landlords
Check your current policy for any term about benefit claimants or children. If it was entered into before 1 May 2026, it can only be relied on until renewal.
At renewal, confirm the new policy contains no such term.
Review your advertising and your agent's process. "No DSS" wording is unlawful.
Reference fairly. Use the same referencing for every applicant, and consider guarantors where needed.
Keep records of rent payments, including direct payments from Universal Credit.
Get your paperwork right. Gas, electrical, EPC and deposit compliance matter for any possession claim. See our landlord safety certificates checklist.
Keeping records
Keep a simple record of how you select tenants: the criteria you use, the checks you carry out, and why you chose the successful applicant. If your decision is ever questioned, a consistent process applied to everyone is the best evidence that you didn't discriminate. Use the same referencing standard for every applicant, so your rent guarantee cover applies on the same terms.
Frequently asked questions
Can my insurer refuse to cover me if my tenant is on benefits?
For a policy entered into or renewed on or after 1 May 2026, a term requiring you to refuse benefit claimants is of no effect. Insurers can still underwrite on genuine risk factors like how the property is let.
My policy started before May 2026 and says "no DSS". What now?
That term can be relied on only until the policy ends or renews. At renewal it falls away. Ask your insurer or broker to confirm.
Can I still ask for a guarantor?
Yes. You can apply the same referencing standards to all applicants, including asking for a guarantor. You can't refuse someone because they receive benefits.
Does this apply in Scotland?
These rules apply to tenancies in England. Scotland and Wales have their own rules.
Does Universal Credit count towards rent arrears for eviction?
For ground 8, the court ignores arrears that exist only because the tenant hasn't yet received a Universal Credit payment they're entitled to.
Is rent guarantee harder to get for tenants on benefits?
It depends on the insurer's referencing standard. Ask how benefit income is treated in affordability checks.
Check your policy for old clauses
Send us your current landlord policy or renewal and we'll review it and come back with quotes from the insurers on our panel. Compare landlord quotes.
Meshed is a trading name of Mesh'd Limited, authorised and regulated by the Financial Conduct Authority (FRN 1033248). We charge a flat 10% broker fee. This guide is general information, not legal advice.
Vincent Liu
Co-founder & CTO
