Government rules out using rental payment history as proof of affordability

The government has confirmed rental payment history will not be used as mandatory proof of affordability for tenancy agreements.

In response to a written question, Housing Minister Matthew Pennycook said there is no “one-size-fits-all approach for landlords” when determining whether a tenancy is suitable.

Many landlords ask for a guarantor to provide financial protection, particularly when dealing with tenants who may face financial difficulties, have poor credit, or lack stable employment.

There is no one-size-fits-all approach

Liberal Democrat MP Edward Morello asked whether the Ministry of Housing, Communities and Local Government would bring forward legislative proposals requiring landlords and agents to accept rental payment history as proof of affordability.

In response, Mr Pennycook said the government would not mandate rental payment history as proof of affordability.

He said: “There is no one-size-fits-all approach to determining whether any given tenancy will be sustainable and good landlords already assess tenant suitability on the basis of individual’s circumstances.

“Landlords and agents remain free to undertake referencing and affordability checks with a view to ascertaining whether a tenancy is sustainable. This may include a history of rental payments, but other available referencing criteria can also be taken into account.”

Government has no current plans to accept rental payment history as proof of affordability

He adds: “Where a private landlord or agent is not satisfied by the outcome of pre-tenancy checks, there remain options available to provide further reassurance such as requiring a tenant to provide a guarantor.

“Professional guarantor services are also available and can help prospective tenants acquire a guarantor in circumstances where they otherwise would not have been able to do so. Local authorities may also offer guarantee schemes or assistance with rent payments to help people on low incomes or at risk of homelessness to secure a property.

“The government has no current plans to legislate to require social or private landlords and agents to accept rental payment history as proof of affordability.”

Property118 commercial reality check

The government’s position reinforces a basic commercial truth. Landlords cannot outsource judgement to a single metric. Referencing must remain a disciplined risk filter shaped by your portfolio strategy, gearing level and appetite for arrears exposure. Noise comes and goes. Numbers tell the real story.

What serious landlords should do next

Tighten your referencing framework. Define clear affordability thresholds, income multiples and red-flag triggers that fit your own business model. A structured decision matrix reduces disputes, delays and emotional pressure.

Document and audit readiness. Keep a current pack of portfolio data, arrears history and tenancy performance so you can benchmark new applicants against your own proven risk indicators rather than relying on generic templates.

Strengthen your guarantor criteria. Set clear income levels, residency requirements and verification standards. A strong guarantor is a commercial safeguard, not an optional extra, and your criteria should reflect real portfolio risk.

Advantage through professionalism

Professional landlords stay ahead by applying consistent rules, recording outcomes and choosing certainty over hope. Control comes from structure. Structure delivers resilience.