How the Renters' Rights Bill raises the stakes for tenant referencing
The Renters' Rights Bill is set to bring the biggest shift in lettings legislation in decades. With fixed-term tenancies scrapped and Section 21 on the way out, it will soon be much harder to evict tenants once they're in. For letting agents, that means one thing: getting tenant selection right from the start is more important than ever.
What's changing?
The Bill introduces a series of reforms designed to give renters more long-term security. Key changes include:
- All tenancies will become periodic
Fixed-term assured shorthold tenancies will be replaced with rolling monthly contracts. - Section 21 will be abolished
Landlords will no longer be able to evict tenants without giving a specific reason. Repossession will require a valid ground under Section 8. - Eviction grounds will be more difficult to apply
For example, the threshold for eviction due to rent arrears is rising from two to three months, and the notice period for these evictions will increase from two weeks to four. - New restrictions on rent increases and advertising
Landlords will be limited to one rent increase per year and must advertise properties at a single price. "Bidding wars" will be banned.
These changes aim to improve conditions for tenants. But they also reduce the flexibility that agents and landlords currently rely on.
Why tenant selection now carries more risk
The Renters' Rights Bill removes a key safety net by ending Section 21. Once a tenant is in, it will be much harder to regain possession unless there is a clear legal ground to do so. That makes the start of the tenancy more critical than ever.
A poor tenant choice could lead to:
- Extended rent arrears
With longer arrears needed before eviction can be considered, landlords face greater financial exposure if a tenant falls behind. Without a clear understanding of a tenant's financial position, months of unpaid rent could build up with no quick solution in sight.
- Limited grounds for eviction
With fixed-term contracts scrapped, agents can no longer rely on the end of a tenancy to part ways with a difficult tenant. A valid Section 8 ground will be needed, and any gaps in documentation could delay the process further. - Greater legal and reputational risk
If referencing is rushed or incomplete, tenants could challenge eviction attempts or raise complaints about unfair treatment. Agents may face legal scrutiny or damage to their reputation if the right checks are not in place from the outset.
The removal of flexibility means tenant selection is no longer just about moving quickly. It is about getting it right to protect landlords and the business.
Referencing matters more than ever
With the Renters' Rights Bill making it harder to remove tenants, the emphasis shifts to getting the right people in from the very beginning. Thorough referencing is the best way to reduce the risk of problem tenancies before they start.
By carefully checking affordability, identity and background, agents can help landlords avoid costly arrears, disputes and legal complications. Good referencing means fewer surprises and more stable tenancies, which benefits everyone involved.
Vouch supports agents in making these decisions by providing:
- Real-time income and affordability checks via open banking
Helping confirm tenants can afford the rent for the long term. - Automated ID verification and fraud detection
Preventing tenancy fraud before it happens. - A full audit trail
Keeping all checks documented and easy to reference if questions arise later.
Investing time and care into referencing upfront saves significant time and cost down the line. It also builds confidence with landlords that their properties are in safe hands.
Stay in control with the right tools
The Renters' Rights Bill is a clear signal that tenant risk is increasing. Agents who want to stay ahead need to review their onboarding process now, while they still have time to prepare.
Vouch helps agents work faster, stay compliant, and make better decisions at the point that matters most: before the tenant moves in.