In the last few weeks fresh concerns have come to light around the challenges faced by benefit recipients living in the private rented sector. Yesterday (24 April), the Work and Pensions Select Committee heard oral evidence from a range of stakeholders including landlords, agents, benefit recipients and mortgage lenders on the topic.

To understand our members? positions on the matter, we surveyed our buy-to-let (BTL) members regarding their lending policies in circumstances where the tenant in a BTL property receives benefits.  

Nearly three dozen lenders responded to our survey. We found that firms with no restrictions against tenants receiving benefits make up a collective 89 per cent of the market for new BTL lending.

Firms representing the remaining 11 per cent of the market include:

• Lenders who allow tenants on benefits to occupy their properties when certain conditions are met (e.g. if the landlord has demonstrated enough experience)
• Lenders who do not allow tenants on benefits
• Lenders who did not respond to our survey

Ultimately, the decision to include a ban on benefit tenants in a lender's terms and conditions is a commercial decision up to each individual firm.

It's key to note that most property in the private rented sector is unmortgaged. Mortgaged landlords today have access to an unprecedented variety of products which do not restrict letting to benefit recipients. For these reasons, we do not believe the mortgage market is preventing these tenants from accessing the private rented sector.

However, we believe Shelter got it right when they said that the struggle for renters on housing benefit is real, and we applaud the government's intentions to protect the most vulnerable tenants.