The case, heard at York County Court, involved a single mother who inquired about renting a two-bedroom property in the city, but was told her application would not be considered as she was in receipt of housing benefit.

District judge Victoria Mark ruled that the prospective tenant had been indirectly discriminated against due to her sex and disability.

The judge concluded: “The defendant’s former policy of rejecting tenancy applications because the applicant is in receipt of housing benefit was unlawfully indirectly discriminatory on the grounds of sex and disability contrary to sections 19 and 29 of the Equality Act 2010.”

Housing charity Shelter, which had taken up the case on behalf of the mother, described the ruling as “a huge breakthrough” for its End DSS Discrimination campaign and a “clear warning” to landlords.

Chief executive Polly Neate said: “This momentous ruling should be the nail in the coffin for ‘No DSS’ discrimination. It will help give security and stability to people who unfairly struggle to find a place to live just because they receive housing benefit.

“Shelter’s ‘No DSS’ campaign has had a tough fight for people’s right to a safe home.”

Rose Arnall, the Shelter solicitor who led the case, added: “This is the first time a court has fully considered a case like this. It finally clarifies that discriminating against people in need of housing benefit is not just morally wrong, it is against the law. This sends a huge signal to letting agents and landlords that they must end these practices and do so immediately.”