The UK government has confirmed that rental payment history will not be mandated as proof of affordability for tenancy agreements. This decision emphasises that landlords and agents retain discretion in assessing tenant suitability, allowing for a flexible approach tailored to individual circumstances. For landlords, this means continuing to apply comprehensive referencing processes rather than relying solely on past rental payments.

No mandatory use of rental payment history

In response to a written parliamentary question from Liberal Democrat MP Edward Morello, Housing Minister Matthew Pennycook clarified the government’s stance on rental payment history as proof of affordability. Mr Pennycook stated that there is no “one-size-fits-all approach” for landlords when determining whether a tenancy is sustainable. While rental payment history can be one factor in referencing, it will not be compulsory for landlords or agents to accept it as definitive proof of affordability.

This position recognises the varied nature of tenancies and tenant circumstances across the private rented sector. Landlords are encouraged to continue assessing tenant suitability based on a range of criteria, including income, employment status, credit checks, and other relevant financial information.

Flexibility in referencing and affordability checks

Mr Pennycook emphasised that landlords and agents remain free to undertake referencing and affordability checks as they see fit. These checks may include rental payment history but are not limited to it. Other referencing criteria can also be considered to ascertain whether a tenancy is sustainable.

Where pre-tenancy checks do not provide sufficient reassurance, landlords have options such as requiring a guarantor. The government noted that professional guarantor services exist to assist prospective tenants who might otherwise struggle to provide one. Additionally, local authorities may offer guarantee schemes or rent payment assistance to support tenants on low incomes or those at risk of homelessness.

Implications for landlords and agents

This government stance reinforces the importance of a robust and tailored referencing process. Landlords cannot rely on a single metric such as rental payment history to assess affordability or tenant suitability. Instead, referencing should be a comprehensive risk assessment aligned with the landlord’s portfolio strategy, financial exposure, and risk appetite.

Landlords are advised to tighten their referencing frameworks by defining clear affordability thresholds, income multiples, and red-flag triggers that reflect their business model. Maintaining detailed records of portfolio performance, arrears history, and tenancy outcomes enables landlords to benchmark new applicants effectively against proven risk indicators rather than generic templates.

Strengthening guarantor criteria is also important. Landlords should set clear income requirements, residency conditions, and verification standards for guarantors, recognising their role as a commercial safeguard rather than an optional extra.

Professionalism and structured decision-making

Adopting a structured decision matrix for tenant referencing reduces disputes, delays, and emotional pressure. Professional landlords benefit from consistent rules, thorough documentation, and measured risk management. This approach provides greater control and resilience in managing rental portfolios.

Looking ahead: TLA Trusted Partners Hub

In related news, the Tenant and Landlord Association (TLA) is launching a new Trusted Partners Hub in the first quarter of 2026. This platform will feature verified and approved service providers selected to support landlords, tenants, and property management businesses. Legal, trades, insurance, financial, mortgage, tenant screening, and other service providers are invited to register their interest to join the Hub at the TLA website.