Changes to Welsh rental legislation in 2026 have made it more important than ever for landlords to understand how they assess prospective tenants.

Since 1 June 2026, landlords and letting agents in Wales cannot discriminate against someone because they receive benefits. But what does this actually mean when you're letting a property?

Not simply because they receive benefits.

A landlord cannot reject an applicant solely because they receive Universal Credit, Housing Benefit or another form of benefit.

This also means landlords should avoid blanket statements in property adverts such as “No DSS”, “No Benefits” or “Working Applicants Only”.

Applicants should be given a fair opportunity to apply and be assessed.

Can landlords still carry out affordability checks?

Yes.

This is an important distinction.

The legislation does not mean landlords have to accept every applicant. Landlords can still carry out reasonable affordability and referencing checks to make sure the rent is sustainable.

For example, an assessment could consider:

• Total household income
• Employment income
• Benefit income
• Regular financial commitments
• Previous rental history
• References
• Credit history
• Whether a guarantor is appropriate

The key is that applicants should be assessed using fair and consistent criteria.

Receiving benefits should not automatically result in an application being rejected.

What about guarantors?

Landlords can still request a guarantor where appropriate.

However, landlords should be careful about automatically requiring a guarantor from every applicant who receives benefits if the same requirement isn't applied to other applicants in similar financial circumstances.

The focus should remain on the applicant's overall ability to afford the property, rather than the source of their income.

What does this mean for landlords?

If you're a landlord in Wales, it's worth reviewing your current letting process.

Make sure your:

Property adverts don't exclude applicants receiving benefits.

Affordability criteria are clear and consistently applied.

Referencing process considers an applicant's overall financial circumstances.

Occupation contracts and paperwork are kept up to date with current legislation.

These changes apply to both landlords and letting agents, so it's important that anyone involved in letting or managing your property understands the current requirements.

How can Padarn Property help?

Keeping up with Welsh rental legislation can be challenging, particularly when requirements change.

At Padarn Property, we help landlords manage the practical side of letting their properties, from marketing and viewings through to referencing, occupation contracts, rent collection, inspections and maintenance.

Our aim is to make letting your property straightforward, professional and compliant.