Most possession problems trace back to a tenant who was not adequately referenced before the tenancy started. A credit check, employment confirmation, affordability test, and previous landlord reference together take 24–48 hours and cost £20–£30 per applicant. That cost is trivial compared to the cost of Section 8 possession proceedings.
From 1 May 2026, referencing criteria must be applied consistently and without discrimination. The Renters' Rights Act 2025 prohibits blanket refusals based on housing benefit status or having children.
The four standard reference checks
A complete tenant reference typically includes four elements:
- Credit check: Searches the tenant's credit file for County Court Judgements (CCJs), defaults, bankruptcy, and payment history. Run through a credit reference agency (Experian, Equifax, or TransUnion via a referencing provider).
- Employment verification: Confirms employment status, employer name, annual salary, and contract type. For self-employed tenants: request 12 months of bank statements and an HMRC SA302.
- Affordability test: Gross monthly income should be at least 2.5× the monthly rent (rent ≤ 40% of gross income). A £1,000/month property requires gross earnings of at least £2,500/month.
- Previous landlord reference: Contacts the previous landlord to confirm on-time payment, no complaints, and condition of property at departure. The most reliable predictor of future behaviour.
Right to Rent checks
In England, Right to Rent checks are a separate legal requirement under the Immigration Act 2014. You must verify the Right to Rent of every adult who will occupy the property before the tenancy starts. Right to Rent is not part of standard tenant referencing — it is a separate obligation with its own civil and criminal penalties. See our guide for the full process.
- Check every adult occupant — not just the named tenant
- Retain copies of documents checked for the duration of the tenancy plus 12 months
- Follow-up checks required for tenants with time-limited Right to Rent (e.g. visa holders)
How to conduct referencing
Three main approaches:
- Professional referencing service: Homelet, Let Alliance, OpenRent Referencing, or similar. Conducts all checks and provides a pass/fail report with supporting evidence. Typically £20–£30 per applicant. Recommended for rent guarantee insurance compliance.
- Letting agent: Most agents include referencing in their tenant-find service. Confirm what checks are included and whether they satisfy your rent guarantee insurer's requirements.
- DIY: You can request payslips, bank statements, and employer letters directly. Credit checks require a registered search — you cannot run a formal credit check without the applicant's consent and a registered account with a credit reference agency.
When a reference comes back unsatisfactory
A failed reference does not automatically mean you must refuse the application. Options depend on the nature of the failure:
- Low income / affordability fail: Offer a guarantor (see our guarantor agreement guide). If no guarantor is available, consider whether advance rent is an option.
- CCJ or default: Consider the age and value. A small, satisfied CCJ from 3+ years ago may be acceptable with a guarantor. A recent large unsatisfied CCJ is a red flag.
- Employment cannot be verified: Request alternative evidence — 3 months' payslips, 6 months' bank statements showing salary credits, HMRC SA302.
- Negative previous landlord reference: This is the strongest predictor of future problems. A negative reference from a previous landlord should generally result in declining the application.
Non-discrimination rules from 1 May 2026
The Renters' Rights Act 2025 strengthened restrictions on discriminatory referencing from 1 May 2026:
- You cannot refuse a tenant solely because they receive housing benefit or Universal Credit ('no DSS' policies are unlawful)
- You must offer a guarantor or advance rent alternative if an income threshold cannot be met due to benefit income
- You cannot refuse based on protected characteristics under the Equality Act 2010 — disability, race, sex, religion, family status
- Document your referencing criteria and the basis for any refusal — this is your defence if a refusal is challenged
Frequently asked questions
How long does tenant referencing take in the UK?+
Professional referencing typically takes 24–72 hours once the tenant has submitted their details and consented to checks. The slowest element is usually the previous landlord reference — some landlords take several days to respond.
Can a tenant refuse a reference check?+
A tenant can refuse, but you are entitled to decline the application as a result. Referencing requires the tenant's consent to credit and employer checks. If they will not consent, that itself is a warning sign.
Is tenant referencing required by law?+
Right to Rent checks are required by law in England. Tenant referencing (credit, employment, affordability, previous landlord) is not legally required — but it is a condition of most rent guarantee insurance policies, and is your strongest practical protection against arrears.
Can I refuse a tenant because of a bad credit score?+
Yes, provided you apply the same criteria consistently to every applicant and your criteria do not disproportionately exclude protected groups. A CCJ or unsatisfied default is a legitimate reason to decline, provided you document the decision basis.
Does a guarantor need to be referenced?+
Yes. A guarantor should be referenced to at least the same standard as the tenant — and ideally to a higher income threshold, since the guarantor may need to cover both their own costs and the tenant's rent simultaneously. The guarantor agreement should be executed as a deed.