Some landlords may believe that previously-homeless people do not make good tenants. This may be due to a lack of understanding about homelessness and a view of homeless people as chaotic, which is often portrayed in the media.
Landlords may be reluctant to accept tenants that receive housing benefit as they may believe that housing benefit will not pay the amount of rent that they wish to receive. They may not wish to work with a large administrative system that automatically pays rent four weeks in arrears and can produce delays in rent payments.
Additionally, landlords may find that some insurance companies only agree to insure their property if they agree not to rent it to tenants claiming housing benefit. As well as directly excluding those in receipt of benefits from renting, this blanket exclusion policy may foster the opinion amongst landlords that people claiming benefits represent high-risk tenants.