Government urges landlords to adopt alternative referencing methods as checks tighten

The government has encouraged landlords to use other available referencing criteria to give them confidence the tenancy is suitable.

In a written parliamentary answer, Housing Minister Matthew Pennycook encouraged landlords to use alternative referencing where a previous landlord reference is unavailable, following concerns over landlords not providing a tenancy reference until a tenant has served notice on their existing tenancy.

The news comes as landlords are tightening referencing checks due to the Renters’ Rights Act.

Encourage landlords to make use of available referencing

In a written parliamentary question, Labour MP Beccy Cooper asked: “What assessment has the government made of the potential impact on private renters of letting agents and landlords declining to provide tenancy references until a tenant has served notice on their existing tenancy”.

In response, Mr Pennycook said: “Where a landlord has requested a reference from a previous landlord and is unable to obtain this, we encourage landlords to make use of other available referencing criteria to give them and the tenant the confidence that the tenancy is suitable.

“This is already common practice for tenants renting for the first time or those from abroad. 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 when they may otherwise struggle to do so.

“The government has no plans to introduce a statutory duty for landlords to provide tenants references when requested.”

Landlords more cautious

As previously reported by Property118, landlords have become more cautious following the act coming into force in May and have tightened referencing checks.

Ben Grech, CEO of Reposit, said: “We know that landlords are becoming increasingly risk-averse, placing greater emphasis on financial security and tenant reliability.

“While there are early signs that arrears are beginning to stabilise, they remain slightly elevated as both landlords and tenants continue to feel the impact of sustained cost pressures.

“With the Renters’ Rights Act now in place and the abolition of Section 21 no-fault evictions, landlords are understandably becoming more cautious, given the reduced flexibility in how they manage tenancies.”