The abolition of Section 21 on 1 May 2026 changed the risk calculation around tenant selection fundamentally. Under the previous framework, landlords who made a poor tenant choice had a relatively straightforward route to regain possession. Under the new framework, possession requires a specific, evidenced ground under Section 8, a process that takes time, incurs costs, and depends heavily on the quality of records maintained throughout the tenancy.
The practical implication is clear: selecting the right tenant at the beginning of a tenancy has never been more important, and investing in thorough screening has never delivered a clearer commercial benefit.
What thorough screening actually involves
Professional tenant referencing covers several key areas, and a robust process should address each one before a tenancy is agreed.
Credit history assessment
Credit checks provide insight into an applicant's history of managing financial commitments, including county court judgements, individual voluntary arrangements, bankruptcy history, and missed payments. A poor credit history does not automatically mean an applicant should be rejected, but it provides valuable context when assessing affordability and risk.
Income and affordability verification
Confirming that an applicant can comfortably meet the rent is one of the most important parts of the referencing process. Income should be verified through appropriate documentation such as payslips, bank statements, or tax calculations for self-employed applicants rather than relying solely on information provided during an application.
Employment verification
Employment checks help establish the stability of an applicant's income. Someone who has recently started a role or remains within a probationary period presents a different risk profile from someone with several years of employment history in the same position.
Previous landlord references
A reference from a previous landlord can provide some of the most useful information available when assessing a prospective tenant. Confirming whether rent was paid consistently, whether the property was maintained properly, and whether the tenancy ended smoothly gives valuable insight into future behaviour.
Right to Rent checks
Right to Rent verification remains a legal requirement for landlords in England. Every adult occupant must have their eligibility checked before the tenancy begins, with follow-up checks required where a time-limited right to rent applies.
What landlords cannot do
The Renters' Rights Act introduced stronger protections against discrimination during the letting process. Landlords cannot refuse applicants because they have children or because they receive benefits, and property advertisements cannot exclude these groups.
Tenant selection decisions must be based on consistent criteria, genuine affordability checks, and reference information rather than assumptions about an applicant's personal circumstances. Every applicant who meets the required criteria should be assessed fairly.
The cost of getting it wrong
A poorly selected tenant can create significant financial and administrative challenges. Rent arrears, disputes, legal costs, possession proceedings, and remedial works can quickly outweigh the cost of carrying out professional referencing at the start of the tenancy.
Thorough tenant screening is one of the most effective ways landlords can protect their investment, reduce risk, and create a successful long-term rental relationship.
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