The Renters' Rights Act 2026: what it means for tenant referencing

After years of consultations, delays and political back-and-forth the Renters' Rights Act is finally becoming law. It's the biggest shake-up to the private rented sector in a generation, and whether you think it's long overdue or a step too far, the reality is that it's happening and agents need to prepare.

We've had a lot of questions from our customers about what the Act means in practice, particularly around how it affects tenant referencing. So we thought it'd be helpful to pull together the key changes and explain what they mean for the way you vet and manage tenants.

The headline changes

There's a lot in the Act, but for letting agents and landlords, these are the provisions that matter most:

• Section 21 is abolished. No more 'no-fault' evictions. Landlords will need to rely on specific grounds under an amended Section 8 to regain possession. This is the big one, and we'll be writing more about the implications of this separately.
• All tenancies become periodic from day one. Fixed-term assured shorthold tenancies are being scrapped. Every tenancy will be a rolling periodic tenancy, with tenants able to give two months' notice at any time.
• A new PRS (Private Rented Sector) Database. The government is creating a national database of private landlords and their properties. Landlords will need to register before they can legally let a property, and agents will need to ensure their landlords are compliant.
• Limits on rent in advance. The Act restricts landlords from requesting more than one month's rent in advance. This removes a common workaround that some agents used when tenants didn't quite pass referencing.
• A new PRS Ombudsman. All private landlords will be required to join the Ombudsman scheme, giving tenants a formal complaints route outside of the courts.
• Discrimination protections. It will be illegal to have blanket bans on tenants receiving benefits or tenants with children. Decisions must be based on individual affordability, not assumptions.

What this means for referencing

The short version: referencing becomes more important, not less.

With Section 21 gone, there's no easy exit if things go wrong. That means getting the right tenant in the first place is critical. We've already seen an uptick in agents requesting our more comprehensive referencing packages - the ones that include Open Banking income verification, AML checks and digital ID verification - rather than just a basic credit check. That makes sense to us. If you can't easily remove a tenant, you need to be more confident in who you're letting to.

The ban on requesting multiple months' rent in advance is also significant. Previously, if a tenant had a patchy credit history or couldn't provide a guarantor, some agents would accept several months' rent upfront as security. That option is effectively gone. Instead, you'll need to make a clear decision based on the reference: does this tenant meet the criteria, or don't they?

The anti-discrimination provisions also put more pressure on the quality of referencing. You can no longer reject tenants simply because they receive Universal Credit or have children. Your decisions need to be based on evidence - affordability calculations, credit history, employment verification. A solid tenant reference gives you that evidence and protects you if a decision is ever challenged.

When does all this actually happen?

The Act received Royal Assent in late 2025, but the various provisions are being brought into force on different dates. The government has indicated that the core tenancy reforms - including the abolition of Section 21 and the switch to periodic tenancies - will apply to new tenancies first, with existing tenancies transitioning later. The PRS Database and Ombudsman schemes will take longer to set up.

Our advice: don't wait for the specific commencement dates. Start treating every new let as if the Act is already in force. That means comprehensive referencing on every applicant, clear documentation of your decision-making process and making sure your landlords understand why this matters.

How we can help

We've been providing tenant references since 2008, and we've navigated plenty of regulatory changes along the way - the Tenant Fees Act, Right to Rent, GDPR, and now this. Our referencing packages already cover everything you'll need under the new regime: Equifax credit checks, Open Banking affordability verification, AML screening, digital ID verification through Yoti and previous landlord and employer references.

If you're not currently a Vorensys customer and you'd like to see how we can help you prepare, we offer a free, no-obligation trial. And if you're an existing customer who wants to review your referencing package ahead of the changes, just give us a ring on 01630 318181 - we're always happy to talk things through.