Landlords place growing importance on tenant referencing

More than one million County Court Judgments (CCJs) were registered in England and Wales last year, as more than half of landlords say tenant referencing has become more important following the ban on rent in advance.

Research by LRG reveals that tenant referencing has never been more important for landlords, with Section 21 abolished and the ban on rent in advance now in place.

According to Registry Trust, more than one million new consumer County Court Judgments were registered in England and Wales in 2025, an 11.6% increase year on year and the highest annual total since 2019.

Employment status and income

Data by LRG reveals 41% of landlords say they rely on their letting agent to manage the referencing process.

Of those taking a more active view, 37.4% say referencing has become significantly more important since the advance rent ban, with a further 7.8% saying slightly more important.

When asked to identify the single most important factor when deciding whether to accept a tenant application, employment status and income came out on top, cited by 40.6% of landlords. This was closely followed by the referencing report provided by their letting agent, at 38.8%.

Previous landlord references accounted for just 6.1%, while only 2.9% said their gut feeling about an applicant was the most important factor.

Allison Thompson, chief lettings officer, Leaders part of LRG, explains landlords must take referencing seriously.

She said: “With advance rent no longer available, referencing has moved from being one tool among many to being the most important decision a landlord makes before a tenancy begins.

“The volume of CCJs and adverse credit markers in the population is rising, and landlords are right to take the referencing process seriously.”

Most tenants pass referencing checks

The data shows that the vast majority of tenants pass referencing, with 82% saying they have always passed without issue.

Among the minority who have been refused, income level was the most common reason, cited by 4% of tenants, followed by employment type at 2.2% and credit history at 1.6%.

The findings also suggest that many tenants see value in rigorous referencing. Some 36.8% say it benefits landlords and tenants equally, recognising that thorough checks can help prevent tenants from committing to a tenancy they may struggle to sustain.

A further 21% believe referencing benefits landlords more, while acknowledging that tenants can also benefit. Only a quarter (25%) view referencing purely as a tool to protect landlords.