Tenant referencing for letting agents: what to check and what you cannot ask
The checks a letting agent in England should run on an applicant, the questions the Renters' Rights Act now rules out, and what slows referencing down.
Referencing is the point where a letting agent earns a landlord's trust. Done well, it takes a few working days and ends with a tenant who can pay the rent and a file that shows how the decision was made. Done badly, it either lets the wrong tenant through or screens people out on grounds that have been unlawful since 1 May 2026.
This guide sets out what to check, what you can no longer ask or do, and what makes referencing drag on. Checked against gov.uk on 31 October 2026.
At a glance
| Check | What it tells you | Who pays |
|---|---|---|
| Affordability | Whether the rent is realistic against income, including benefit income | The landlord or agency; never the tenant |
| Credit check | Adverse records such as CCJs, insolvency, and whether the person is who they say they are | The landlord or agency |
| Employer or income reference | Confirms the job, pay and start date | The landlord or agency |
| Previous landlord reference | Rent history, condition of the last property, how the tenancy ended | The landlord or agency |
| Right to Rent | A legal check on every adult who will live there | The landlord, or the agent in writing |
Since the Tenant Fees Act, referencing cannot be charged to the applicant. See permitted payments for the full list of what can be taken.
Affordability
Affordability is the first question: can this person pay this rent every month. Most agencies compare gross annual income with annual rent. Whatever ratio you use, write it down and apply it to everyone.
Two rules from the Renters' Rights Act change how affordability works in England:
- Benefit income counts in full. The government's rental discrimination guidance says landlords can take a tenant's income into account when considering if the rent is affordable, and that referencing must treat all income equally. Benefit income cannot be ignored or discounted.
- Rent in advance cannot fix a weak application. No rent can be requested before the tenancy agreement is signed, and no more than one month's rent between signing and the start date. Asking for six months up front is a prohibited payment. A guarantor is the usual route instead.
The guidance is clear that there is nothing stopping the landlord from refusing a tenant if they cannot afford the rent. The decision has to be about the numbers, applied the same way to each applicant.
Credit, employer and landlord references
A credit check for lettings confirms identity and address history and shows adverse records such as county court judgments or insolvency. Tell the applicant what you are checking and why, record the result against their file, and keep it only as long as you need it. A poor credit history is a reason to ask for a guarantor; it is not a reason to turn someone away before a viewing.
An employer reference confirms job title, salary, start date and whether the role is permanent, fixed term or probationary. Self-employed applicants can show tax returns or an accountant's letter. A slow employer is the most common cause of delay, so ask the applicant to warn their HR team on the day you request it.
A previous landlord or agent reference covers whether rent was paid on time, the condition the property was left in, and whether the landlord would let to them again. Ask for the one before the current one as well where you can, since a landlord who wants a tenant gone has a reason to be generous.
Right to Rent
Every adult who will live in the property needs a Right to Rent check before the tenancy starts, whether or not they are named on the agreement. Where the landlord has passed the job to your agency in writing, the civil penalty for getting it wrong is yours: up to £10,000 per occupier for a first breach and £20,000 for a repeat.
For someone with a time-limited right to rent, a check made more than 28 days before the start date gives no protection. The full process and the code of practice from 1 October 2026 are in our Right to Rent guide for letting agents.
What you cannot ask or do
Since 1 May 2026 it has been unlawful in England for a landlord, or anyone acting for them, to treat a prospective tenant less favourably because they have children or receive benefits. The guidance names letting agents as acting on the landlord's behalf. That covers more than the advert:
- withholding information about a property or its availability
- refusing a viewing
- screening calls with "do you have children?" or "are you working?"
- an application form with a benefits tick box used to rank applicants
Children here means anyone under 18 who would live at or visit the property. There is a narrow exception where excluding children is a proportionate means of achieving a legitimate aim; there is none for benefits. An insurance policy taken out before 1 May 2026 that bars either group can be relied on until it is renewed or ends.
Separately, the rental bidding ban means you cannot invite or accept an offer above the advertised rent, cannot run best and final offers, and cannot tell applicants about other bids. When several people want the same property, the council guidance says a landlord who picks a tenant using the standard pre-tenancy checks has not breached the rules, so keep those checks consistent and recorded. See advertising a let after 1 May 2026.
The Equality Act 2010 protected characteristics still apply alongside all of this: age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex and sexual orientation. None of them belongs on a referencing form.
The penalties, all enforced by councils, with a tenant also able to go to your redress scheme:
| Breach | Penalty |
|---|---|
| Discrimination against tenants with children or on benefits | Civil penalty of up to £7,000, plus a further £7,000 for a repeat of the same breach within 5 years |
| Inviting or accepting a bid above the asking rent, or advertising without a price | Civil penalty of up to £7,000 per breach type |
| Rent before signing, or more than one month in advance | Repayment plus a civil penalty of up to £5,000 under the Tenant Fees Act |
| No Right to Rent check, where the agent has taken responsibility | Up to £10,000 per occupier, £20,000 for a repeat |
How long referencing takes
No law sets a timescale. What sets it in practice is how quickly four people reply: the applicant, their employer, their previous landlord and anyone standing as guarantor. The holding deposit rules add a deadline: by default the tenancy agreement should be signed within 15 days of the holding deposit being paid unless a later date is agreed in writing, so referencing has to fit inside that window.
Things that slow it down:
- An employer who only confirms references by post or through a third-party portal.
- Self-employed applicants who need to find documents.
- A guarantor added late, who then needs the same checks from scratch.
- A Right to Rent check started too early for a time-limited tenant, which has to be repeated.
Agree the date in writing with the applicant on day one, send every request the same day, and keep one list of what is outstanding.
A checklist for agencies
- Write your affordability rule down and apply it to every applicant, with benefit income counted in full.
- Remove children and benefits questions from forms, scripts and advert templates.
- Request employer, landlord and credit checks on the day the holding deposit is paid.
- Check Right to Rent for every adult, no earlier than 28 days before the start date for time-limited status.
- Reference a guarantor to the same standard as the tenant.
- Record why an applicant was chosen or declined, in words you could show a council officer, and delete referencing data once it is no longer needed.
How Letfold helps
Letfold tracks enquiries, applicants, viewings and offers through to let agreed, so every application sits on one record with the decision and its reasons. Right to Rent checks are recorded against each tenant with reminders before a time-limited check expires. An agency can connect its own PropertyGoose account and order tenant references from inside Letfold, with the result stored against the applicant; this integration is in beta. See features and pricing.
Frequently asked questions
Can a letting agent charge a tenant for referencing?
No. Referencing fees are not a permitted payment under the Tenant Fees Act in England. The landlord or the agency pays.
Can I refuse an applicant who receives benefits?
Not because they receive benefits. You can refuse an applicant who cannot afford the rent, as long as benefit income was counted in full and the same affordability test is applied to everyone.
Can I ask for rent in advance instead of a guarantor?
No. Since 1 May 2026 no rent can be requested before the tenancy agreement is signed, and no more than one month's rent between signing and the start date.
How long should tenant referencing take?
There is no legal timescale. Replies from the employer and previous landlord decide it, and the 15-day default deadline attached to a holding deposit sets the outer limit.
Sources
Checked on 31 October 2026:
- Rental discrimination under the Renters' Rights Act 2025 (gov.uk)
- Rental bidding: a guide for local authorities and councils (gov.uk)
- Guide to the Renters' Rights Act (gov.uk)
- Penalties for renting to someone who does not have the right to rent (gov.uk)
- Equality Act 2010, section 4: the protected characteristics (legislation.gov.uk)
- Tenant Fees Act 2019: statutory guidance for enforcement authorities (as amended by the Renters' Rights Act 2025) (gov.uk)
This article is general information for England, not legal advice.
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