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A major buy-to-let mortgage provider has said it will end rules meaning it does not lend to private landlords renting to people on benefits.
Metro Bank made the announcement today following a roundtable meeting with housing and homelessness minister Heather Wheeler in Downing Street.
The government said the move could help thousands of families relying on benefits to access private rented housing.
Property websites Rightmove and Zoopla have also agreed to ban ‘no DSS’ adverts from letting agent listings.
It comes after the National Housing Federation and Shelter warned in November that preventing people on benefits from renting may breach anti-discrimination laws.
In March, the government announced plans in to hold meetings with mortgage providers, landlord associations, tenant groups and property websites to encourage them to drop the exclusions, with an aim to ban them completely.
Ms Wheeler said: “Regardless of financial circumstances, everyone should have the same opportunity when looking for a home and I have been determined to end the discrimination those on benefits face.
“Today’s meeting was yet another step forward, marking an important shift in making the private rented sector fairer for all – and I am thrilled that Metro Bank have decided to join us in ending the stigma surrounding tenants on housing benefit.
“I am grateful to those companies for taking the time to discuss this issue and look forward to us continuing to work together.”
Will Quince, secretary for family support, housing and child maintenance, said: “We are working to bring the sector together to tackle this issue, ensuring everyone has the same opportunity to access safe and secure housing.
“It’s encouraging that we’re already seeing positive changes being made in the industry, and we continue to encourage landlords and agents to consider tenants on an individual basis.”
Andy Piggott, director of lending products at Metro Bank, said: “Over recent months we have been working closely with a number of industry stakeholders, including the Ministry of Housing, Communities and Local Government, housing charity Shelter and our clients to better understand the challenges facing landlords and their tenants.
“Following an extensive review, we can confirm that we will be changing our buy-to-let lending policy to enable landlords with buy-to-let mortgages to let to people claiming benefits.”