Your tenant failed referencing — what now?
A failed reference is not a verdict, it is a reason. Almost every failure falls into one of six categories, and five of them can be sensibly managed. The sixth shouldn't be. What has changed is your room for manoeuvre: the two classic workarounds — rent up front and a bigger deposit — are now both capped by law.
The old fallback no longer exists
“Six months up front” is not available in England any more. Under the Renters' Rights Act you can require at most one month's rent in advance (28 days for shorter rental periods), and only after the agreement is signed. Deposits are separately capped at five or six weeks by the Tenant Fees Act 2019. If an applicant is short, the answer is a guarantor, not a bigger cheque.
First, find out which failure it was
“Failed referencing” is not one thing, and the right response differs completely depending on which of these you are looking at.
| Why they failed | What it means | Usual fix |
|---|---|---|
| Income below the affordability multiple | The most common failure by far. Most providers apply roughly 30× the monthly rent as gross annual income. It is a benchmark, not a legal test — you can accept less. | A guarantor at 36×, or a joint tenant whose income is added to the total. |
| Adverse credit — CCJs, defaults, an IVA or bankruptcy | Severity and recency matter enormously. A satisfied £200 CCJ from four years ago is not the same risk as an unsatisfied £4,000 one from last month. | Ask for the detail and the context before deciding. A guarantor also covers this. |
| Thin or no credit file | Common for young applicants, recent arrivals in the UK, and people returning from abroad. It is an absence of evidence, not evidence of risk. | Guarantor, or verify income directly through Open Banking or an employer reference. |
| Employment or income couldn't be verified | Often an unresponsive employer rather than a dishonest applicant — but it can also be the first sign of a fabricated job. | Chase the referee yourself; ask for payslips plus matching bank credits. |
| Previous-landlord reference was poor or unobtainable | Worth probing. Ask what specifically went wrong, and be alert to a 'landlord' who is actually a friend. | Verify the landlord independently — Land Registry title, or the agent's published details. |
| Anti-fraud flag or document inconsistency | The one category not to negotiate around. Fabricated payslips and identity mismatches are the highest-risk failures. | Decline. A guarantor does not fix dishonesty at the application stage. |
The guarantor route, done properly
With advance rent and deposits both capped, a guarantor is the main way a marginal applicant still gets housed. Two things make the difference between a guarantee that works and one that doesn't.
Check the guarantor like a tenant. The usual benchmark is gross income of around 36× the monthly rent— higher than the tenant's 30×, because they carry the rent on top of their own housing costs. You can test both in the affordability calculator, and a £9 credit check on the guarantor is the cheapest risk reduction available to you.
Get the guarantee in an enforceable form. It must be in writing and signed, and it is far safer executed as a deed with an independent witness. It also needs to continue into the statutory periodic tenancy — a guarantee drafted only for a fixed term can lapse exactly when the arrears appear. Our free guarantor agreement template covers all three points.
When to simply decline
Every failure except one is about capacity — the income is too low, the credit history is patchy, the employer never replied. Capacity can be underwritten by somebody else, which is what a guarantor is for.
A fraud or document flag is different in kind. It is about honesty, and no guarantor fixes that. If payslips don't reconcile with bank credits, or the “previous landlord” turns out to be a mobile number belonging to a friend, decline — and read how to spot fake payslips before the next application.
Decline fairly, and write it down
Whatever you decide, apply the same standard to everyone and record the reason. A written affordability standard is both fairer and much easier to defend than a series of individual judgement calls — particularly given that blanket refusals of benefit claimants have been held to be indirectly discriminatory. And remember the Tenant Fees Act: you pay for referencing, including any re-run and including the guarantor's check.
FAQ
Can I still ask for six months' rent up front?
No, not in England. Under the Renters' Rights Act a landlord can require at most one month's rent in advance — 28 days where the rental periods are shorter than a month — and only once the tenancy agreement has been signed, before it starts. Large advance payments were the traditional workaround for a failed reference and they are no longer lawful, which is precisely why the guarantor route now matters so much more than it used to.
Can I take a bigger deposit instead?
No. The Tenant Fees Act 2019 caps the tenancy deposit at five weeks' rent where the annual rent is under £50,000, or six weeks where it is £50,000 or more, and a holding deposit at one week's rent. Those caps apply regardless of how the reference went, so there is no headroom to price in extra risk through the deposit either.
Does a guarantor fix a failed reference?
Usually, and it is now the main remaining option. A guarantor is typically assessed at around 36 times the monthly rent — a higher bar than the tenant's 30 times, because they are underwriting the rent on top of their own housing costs. Credit check the guarantor as you would a tenant: a guarantee is only worth as much as the person giving it, and one with their own CCJs adds reassurance rather than protection.
What if the failure was a fraud or document flag?
Decline, and do not try to engineer around it. Every other failure category is about capacity to pay — income too low, credit history poor, employer slow to reply — and capacity can be underwritten by someone else. A fabricated payslip or a mismatched identity is about honesty, and a guarantor does not fix dishonesty. It is also the failure most likely to be the visible edge of something larger.
Do I have to tell the applicant why they failed?
You are not obliged to give a running commentary, but under UK GDPR the applicant can make a subject access request and see the personal data held about them, including the reference. In practice it is better to be straightforward: applicants who understand the specific gap can often close it, usually by offering a guarantor. Be careful not to disclose a third party's personal data — a guarantor's credit detail is theirs, not the tenant's.
Can I charge the tenant for a second check?
No. Under the Tenant Fees Act 2019 charging a tenant for referencing is a banned fee in England, and that includes re-running a check or referencing their guarantor. The landlord or agent pays. It is one reason to run a cheap credit check first as a filter and only pay for a full reference on applicants you are serious about.
Can I let the property to whoever offers the most rent instead?
No. The Renters' Rights Act bans rental bidding: you must publish an asking rent, and you cannot ask for, encourage or accept offers above it. Letting to the highest bidder is no longer a lawful way of pricing in a weaker applicant.
Is it discriminatory to decline someone who failed referencing?
Declining on genuine, evenly-applied affordability grounds is lawful. The risk arises when the standard shifts between applicants, or when the reason correlates with a protected characteristic — refusing benefit claimants as a blanket policy has been held to be indirect discrimination against women and disabled people. Write down the standard you apply, apply it to everyone, and record the reason for each decision.
Disclaimer: This guide is general information for UK landlords, not legal or financial advice. Law and practice change — always confirm the current position, and take advice on anything that matters. The rent-in-advance and deposit limits described here were verified against GOV.UK on 2 August 2026. Renters' Rights Act provisions are being commenced in phases — confirm the current position before relying on it.