No. Since 1 May 2026 it is unlawful to refuse a tenancy because someone receives benefits or has children, and unlawful to advertise on that basis.
That covers the wording of the advert as well as the decision. No DSS and similar phrases were already being found discriminatory before the Renters’ Rights Act made the position explicit.
You can still assess affordability and reference properly. What you cannot do is apply a blanket rule, or set an income requirement designed to have the same effect.
Insurers and lenders sometimes have conditions here. If a policy or a mortgage condition creates a problem, that is a conversation with them rather than a reason to breach the rule.
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