Landlords in England and Wales are attaching growing importance to tenant referencing procedures. This is a direct consequence of recent restrictions on upfront rent payments and a remarkable increase in County Court Judgements (CCJs) against consumers.
Current data shows that in 2025, approximately 1.02 million new CCJs were registered against consumers. This represents an annual increase of 11.6%. This development underscores the need for landlords to carefully vet potential tenants to minimise financial risks and ensure compliance with tenancy agreements.
The Importance of Due Diligence for Landlords
The rise in CCJs indicates broader financial strain on consumers, which can directly affect their ability to pay rent. For landlords, this results in an increased responsibility to comprehensively assess not only the creditworthiness but also the general financial stability of a prospective tenant. Preventive measures through improved vetting processes can prevent future payment defaults or protracted legal disputes.
The heightened focus on tenant referencing also necessitates the use of more detailed credit checks and references from previous landlords. Adherence to legal regulations and the use of reliable data sources are crucial for making informed decisions while safeguarding the rights of prospective tenants. The industry is responding to this trend by adapting its best practice recommendations for lettings.
Real estate experts emphasise that thorough vetting extends far beyond mere income verification. It also includes an analysis of payment behaviour, employment history, and the applicant's reliability. This serves to protect landlords' investments and contributes to the stability of the rental market.
