Referencing for Renting: The Key to a Successful Tenancy

Tenant referencing may not be the most exciting part of the lettings process, but it is one of the most important. Done properly, it protects landlords from taking on unsuitable tenants and helps tenants secure the property they want. Done poorly, it can lead to considerable expense and stress for everyone involved.

With the Renters' Rights Act 2025 now fully in force, this has never mattered more. Landlords who need to regain possession of their property can no longer rely on Section 21 no-fault evictions. All possession claims must now be made through Section 8, citing specific legal grounds. Getting the right tenant in from the start is therefore not just good practice, it is the most effective way of protecting your investment.

What tenant referencing involves

Referencing is the process by which a landlord, or the letting agent acting on their behalf, learns about a prospective tenant's background before agreeing to let to them. It is designed to identify people who are likely to pay their rent on time, look after the property and be considerate neighbours. It also helps screen out applicants with poor financial histories or problematic rental records.

Beyond the mandatory Right to Rent check, there is no legal requirement for landlords to carry out further referencing. However, we would strongly advise it. Landlords who take on an unsuitable tenant without thorough checks can find themselves spending significant time and money dealing with the consequences, and the route to resolving matters is now more involved than it was before May 2026.

The key checks landlords should carry out

A credit check is the natural starting point. It gives a clear picture of an applicant's financial history, including any late or missed payments, previous bankruptcies, Individual Voluntary Arrangements or County Court Judgements going back six years. This is one of the clearest indicators of how reliably a tenant is likely to meet their rent obligations.

A previous landlord reference is equally valuable. Speaking directly to a former landlord can reveal things that no credit report will show whether the tenant took care of the property, paid on time and was straightforward to deal with.

An employer reference and affordability check confirms that the tenant's income is sufficient to cover the rent. Most agents apply an income threshold as a general guideline, though the appropriate level will depend on individual circumstances.

The Right to Rent check is a legal requirement for all landlords in England. You must verify that every adult occupier has the legal right to rent property in the UK before the tenancy begins and keep clear records of the checks carried out. The Home Office can issue a civil penalty of up to £10,000 per occupier for a first breach, rising to £20,000 for repeat offences. Full guidance is available at gov.uk.

It is also worth noting that referencing must comply with equality law. The Renters' Rights Act 2025 makes it unlawful to refuse a tenancy on discriminatory grounds, and blanket policies that exclude tenants in receipt of benefits are not permitted.

A note for tenants

The referencing process involves a certain amount of paperwork, but most of it can now be completed quickly and easily online. If your track record is not entirely straightforward, there are practical steps you can take. Paying all existing accounts on time, maintaining a good relationship with your current landlord and ensuring your documentation is in order all make a meaningful difference when it comes to passing a reference check.

How landlords can get referencing done

Landlords have several options when it comes to carrying out checks. Some prefer to use a professional referencing service, while others collect references directly. The alternative is to use a letting agent. Agents with experience in the London lettings market are well placed to carry out thorough checks and, importantly, to interpret what they find. Spotting a potential red flag in a reference is not always straightforward, and an experienced agent will know what to look for.

A few common questions

We're often asked similar questions by landlords going through this process, so here are quick answers to the ones that come up most.

Do I need to do a Right to Rent check on a returning tenant?
Generally yes - a new tenancy agreement usually means a new check is needed, unless a valid check is already on file from earlier in the relationship. The rules can vary depending on the specific circumstances, so it's worth confirming before the tenancy starts rather than assuming.

Can I refuse a tenant just because they're on Universal Credit?
No. Blanket policies that exclude tenants on benefits are not permitted under the Renters' Rights Act 2025. You can still assess whether the rent is affordable for that individual, but the decision needs to be based on their actual circumstances, not their source of income.

How long do County Court Judgements stay on a credit file?
Typically six years from the date of the judgement, even if it's later paid off - though it may be marked as "satisfied" rather than removed. If it's paid in full within one month, it can sometimes be removed from the register entirely. It's worth checking the specific record rather than assuming.

My applicant's credit check has flagged something from a few years ago. Does that mean I have to reject them?
Not automatically. Older or isolated issues often look quite different from a recent pattern of missed payments. This is one of the areas where additional context, such as a previous landlord reference, can be genuinely useful alongside the credit report.

What happens if I let to someone without confirming their right to rent in the UK?
It's a legal requirement to check, and penalties can apply if it isn't done correctly, with current guidance citing fines of up to £10,000 per occupier for a first breach. The rules are detailed, so it's worth checking the latest gov.uk guidance or asking an experienced agent to walk through it with you.

Can I ask for a guarantor if a tenant doesn't meet the income threshold?
This is generally accepted as part of standard referencing practice and can help where affordability is borderline. As with any part of the process, it should be applied consistently and fairly across applicants.

Is referencing harder for self-employed applicants?
It can look a little different, often involving documents like tax records or accountant references rather than a standard payslip, but self-employment on its own isn't a barrier. It usually just means a slightly different set of paperwork.

What's the difference between a referencing service and a letting agent?
A referencing service typically provides the report. A letting agent with local market experience can also help interpret what's in it and flag anything that might need a closer look, based on familiarity with the area and the kinds of issues that tend to come up.

Talk to us

Referencing is one of those areas where local experience really counts. If you're letting a property in central London and would like our teams in Westminster, London Bridge or Kennington to handle the process for you, we'd be glad to hear from you.

The blog was updated on 16/07/2026.