Landlords are placing greater emphasis on tenant referencing after nearly one million consumer County Court Judgments (CCJs) were registered in England and Wales last year. New research from Leaders found that 45.2% of landlords believe referencing has become more important since restrictions on advance rent came into force.
The shift comes against a tougher credit backdrop. Registry Trust recorded 996,261 new consumer judgments in England and Wales during 2025, up 11.8% on 2024. That figure is slightly lower than the 1.02 million quoted in the Leaders release.
The findings come from Leaders’ Summer 2026 Lettings Report, based on responses from 717 landlords and 860 tenants.
Advance rent restrictions raise the stakes
The Renters’ Rights Act changed the rules governing private tenancies in England from 1 May. For most new tenancies where rent is paid monthly, landlords and agents can require no more than one month’s rent between signing the tenancy agreement and the tenancy starting. Section 21 ‘no-fault’ evictions have also been abolished in England.
Leaders argues that these changes have increased the importance landlords place on affordability and referencing before agreeing a tenancy. Its survey found 37.4% of landlords said referencing had become significantly more important, while another 7.8% said it had become slightly more important. A further 41.7% rely on their letting agent to manage the referencing process.
Income and referencing dominate tenant selection
When landlords were asked to identify the most important factor when deciding whether to accept an applicant, 40.6% chose employment status and income. Another 38.8% selected the referencing report supplied by their letting agent. Previous landlord references, credit history and landlords’ own judgement ranked lower.
However, the tenant findings suggest referencing problems remain the exception rather than the rule. Some 82% of tenants surveyed said they had always passed referencing without an issue. Among those who had encountered problems, 4% cited their income, 2.2% employment type and 1.6% credit history.
More than a third of tenants – 36.8% – believed rigorous referencing benefits landlords and tenants equally. Another 21% thought it primarily benefits landlords but also offers some protection to tenants.
‘Most tenants pass’
Allison Thompson, chief lettings officer at Leaders, part of LRG, 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.
“But the data also shows something encouraging: most tenants pass, and thorough referencing done well protects both sides. It confirms affordability for the tenant as much as it protects income for the landlord.
“That is where professional agents add real value – running a process that is rigorous, fair and documented, and that gives both sides confidence before the tenancy starts.”
