Tenant referencing gains prominence as CCJs rise 11.6%

Landlords across England and Wales are placing greater emphasis on tenant referencing procedures following restrictions on advance rent payments and a significant rise in County Court Judgements (CCJs), according to new research.

Data from Leaders shows that almost half of landlords surveyed indicate tenant referencing has become more important since the ban on advance rent payments took effect. The shift comes as Registry Trust figures reveal nearly 1.02 million new consumer CCJs were registered in England and Wales in 2025, representing an 11.6% annual increase and the highest annual total since 2019.

Rising financial pressure on tenants

Separate analysis by LexisNexis Risk Solutions found that 3.14 million adults, approximately 6% of the adult population, have at least one CCJ or other negative financial event on their credit profile. With 12.9 million people living in the private rented sector, landlords face increased likelihood of encountering applicants with adverse credit during the referencing process.

Under the Renters’ Rights Act, Section 21 no-fault evictions have been removed and advance rent restricted to one month. These changes mean landlords can no longer rely on financial buffers to manage risk after a tenancy begins, making pre-tenancy checks the primary protection mechanism. The regulatory changes follow government moves to strengthen oversight of the lettings sector.

Landlord response patterns

The Summer 2026 Lettings Report from Leaders reveals how landlords are adapting to the new environment. Some 41.7% say they rely on their letting agent to manage the referencing process, the most common response among those surveyed.

Of landlords 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 it has become slightly more important. Only 13.1% report that referencing was always their primary consideration and nothing has changed.

When identifying the single most important factor in deciding whether to accept a tenant application, employment status and income ranked first at 40.6%, followed by the referencing report provided by their letting agent at 38.8%. Together, these two factors account for nearly 80% of landlords surveyed.

Tenant perspectives

From the tenant side, the data suggests a less concerning picture than landlord experiences might indicate. Some 82% of tenants surveyed say they have always passed referencing without issue. Among the minority refused, income level was cited as the most common reason at 4%, followed by employment type at 2.2% and credit history at 1.6%.

Regarding the value of rigorous referencing, 36.8% of tenants say it benefits landlords and tenants equally, recognising that thorough checks can prevent tenants committing to unsustainable tenancies. A further 21% say it benefits landlords more but acknowledge some tenant benefit. Only 25.9% view it purely as a landlord protection tool.

Among landlords using professional agents, 41.7% say professional referencing produces generally or consistently better outcomes than other methods, with only 3.3% saying it performs worse.

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.”

The increased focus on tenant vetting comes as broader regulatory changes reshape the lettings market, with implications for both landlords and tenants navigating the private rental sector. The data indicates that while landlords face heightened scrutiny requirements, the majority of tenants continue to pass referencing checks successfully, suggesting the system functions effectively for most participants in the rental market.