The government is advising landlords to consider a broader range of referencing criteria to ensure the suitability of prospective tenants, especially in situations where a previous landlord reference is not immediately available. This encouragement comes amid concerns that some landlords are withholding references until a tenant has formally served notice on their current tenancy, creating potential difficulties for renters.
Housing Minister Matthew Pennycook outlined this position in a written parliamentary answer, responding to a question from Labour MP Beccy Cooper. Ms Cooper had raised concerns regarding the impact on private renters when letting agents and landlords decline to provide references promptly. Mr Pennycook affirmed that while the government has no current plans to mandate landlord references, it strongly advocates for the use of alternative verification methods.
Mr Pennycook highlighted that such alternative referencing is already a common practice for individuals entering the rental market for the first time or those relocating from abroad. He also noted that local authorities might offer guarantee schemes or provide assistance with rent payments. These programmes are designed to support low-income individuals or those at risk of homelessness in securing properties, particularly when traditional referencing might prove challenging.
The move to encourage broader referencing practices coincides with a reported increase in caution among landlords. Since the Renters' Rights Act came into force in May 2026, many landlords have tightened their referencing checks. Industry figures suggest this heightened scrutiny is a direct response to the legislative changes, which include the abolition of Section 21 'no-fault' evictions, reducing landlords' flexibility in managing tenancies.
Ben Grech, CEO of Reposit, commented on the evolving landscape, stating that landlords are increasingly risk-averse, prioritising financial security and tenant reliability. He noted that while rent arrears show early signs of stabilising, they remain somewhat elevated, reflecting ongoing cost pressures affecting both landlords and tenants. The new legislative environment, particularly the removal of Section 21, is seen as a key factor in landlords adopting a more cautious approach.