Financialization and the Algorithmization of Tenant Discrimination in the Private Rented Sector

On July 15, under the auspices of the Land and Housing Systems Cluster, the Urban Systems Institute (USI) convened a thought-provoking session in its Urban Systems Forum series. The event was chaired by Professor Jin Zhu and featured Professor Chris Foye, Lecturer in Real Estate and Planning at the Bartlett School of Planning, University College London, as the distinguished speaker.

Professor Jin Zhu inaugurated the forum by extending a warm introduction to Professor Foye and welcoming participants. The venue was filled to capacity, underscoring the strong interest within the forum.

Prof. Foye commenced his presentation by sharing insights from his latest research on the intersection of financialisation and algorithm-driven tenant discrimination in the private rented sector. His talk highlighted key trends and conceptual linkages, which engaged the audience’s attention throughout.

The presentation was followed by a dynamic Q&A segment. Several audience members initiated a stimulating exchange with Prof. Foye, asking questions and offering comments on the implications of algorithmic screening and large-scale investment in housing. Prof. Foye responded with enthusiasm and depth, encouraging further discussion and reflection among the attendees.

The forum concluded with an animated atmosphere, leaving participants with fresh perspectives and a deeper understanding of the evolving challenges in the private rental housing sector.

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Abstract: This paper draws a connection between two key trends in the private rented sector: the growing presence of large-scale global “financialised” investors and the pervasive use of algorithmic methods of tenant screening. Through examining discrimination against welfare-recipients in the UK by two largely overlooked financial institutions/products– banks selling buy-to-let mortgages, and insurance companies selling rent guarantee insurance - it makes two main arguments. First, it demonstrates theoretically and empirically how the abstract, quantified and centralised nature of algorithmic forms of discrimination align with the logics of these financial institutions. Hence, as they have adopted a growing financial stake in the private rented sector, so algorithmic methods of discrimination have supplanted more judgemental methods. Second, it shows how political and legal factors have led large-scale global investors to shift away from class-based forms of algorithmic discrimination towards more complex, opaque and pernicious attribute-based forms of algorithmic discrimination. Due to the economic and political-legal factors above, we conclude that there is likely to be a bifurcation of letting practices in the private rented sector: small-scale landlords will continue to rely on judgemental methods of discrimination while large-scale global investors increasingly rely on attribute-based algorithmic methods.

About the Speaker:

Chris Foye is a Lecturer in Real Estate and Planning at the Bartlett School of Planning, University College London. His research analyses housing markets and policy from a range of disciplinary perspectives including economics, geography, sociology and political science.