Tenant Credit Check UK 2026: How to Run One and What to Look For

You’ve found an applicant you like and you’re about to offer the tenancy. A credit check is one of the best-value checks you can run at this point: a £25 report at referencing stage can spare you an arrears case at possession stage. Some self-managing landlords still skip it, either because they don’t know how or because they’re unsure whether it’s allowed after the Tenant Fees Act 2019.

This guide covers what a tenant credit check actually is in 2026, how to run one, what a soft-search shows and doesn’t show, how the Tenant Fees Act affects who pays, and how to interpret the results.

Not credit or legal advice. Referencing is a support to your judgment, not a substitute for it.

What a landlord credit check is

A tenant credit check is a soft credit search on a prospective tenant, run through a credit reference agency (Experian, Equifax, TransUnion) via a licensed referencing provider. A "soft search" leaves no footprint on the tenant’s credit file, so it doesn’t affect their score.

The report typically shows:

• Credit score (numerical and provider-specific: Experian 0–999, Equifax 0–1000, TransUnion 0–710)
• Public register data: CCJs (County Court Judgments), IVAs (Individual Voluntary Arrangements), Debt Relief Orders (DROs), bankruptcies
• Electoral roll history: 3–6 years of addresses
• Undeclared addresses: did the tenant declare all addresses in the referencing form?
• Adverse markers: insolvency, defaults, missed payments (some providers)
• Employment verification: cross-checked against employer if consented
• Previous landlord references: cross-checked if provided

This is what a landlord uses to decide whether to let. It is not a full credit report. The tenant sees more detail on their own file than a landlord ever will.

Who can pay for it (Tenant Fees Act 2019)

The Tenant Fees Act 2019 prohibits landlords and agents from charging tenants for referencing, credit checks, or admin fees. The only fees permitted from tenants are:

• Rent
• Deposit (max 5 weeks’ rent for annual rent under £50k)
• Holding deposit (max 1 week’s rent, refundable/deductible)
• Change to tenancy fee (max £50 unless higher cost proven)
• Early termination fee (limited)
• Council tax, utilities, TV licence, communication services (where the tenant is contractually liable)
• Default fees (limited)

Credit check fees are not on that list. The landlord (or agent) pays. This applies whether you commission through a specialist referencing provider or run the check yourself.

Charging the tenant for referencing, even indirectly (for example by labelling it "admin"), is a breach of the Act punishable by a £5,000 fine on first offence, £30,000 on repeat.

The three tiers of referencing product

Tier 1: Credit check only (£15–£25). Just the credit report. Fast (often within 24 hours). Cheapest but thin. Use for: guarantor checks, quick screens before viewings, urgent lets.

Tier 2: Full tenant reference (£25–£45). Credit check + employment verification + previous landlord reference + right-to-rent check + affordability calculation. Standard product. Takes 48–72 hours. Use for: every let.

Tier 3: Rent guarantee ready reference (£50–£90). Full reference + insurer-approved format for rent guarantee insurance eligibility. Use for: any let where you plan to buy rent guarantee cover.

The specialist providers in the UK market in 2026 include LetCompliance’s partner, HomeLet, Rentguard, Goodlord, FCC Paragon, and the tenant-facing providers (Openrent Referencing, etc.).

LetCompliance’s tenant referencing uses credit data from a UK credit reference agency. It sits in the same flow as your advert, the online tenant application and the tenancy agreement with e-signature, so the report is waiting on the applicant you’re about to let to.

What a good report looks like

A tenant you should be comfortable letting to:

• Credit score in the top half of the provider’s scale. Each agency uses its own scale, so read the score against that agency’s bands.
• No CCJs, IVAs, bankruptcies, DROs in the last 6 years.
• All declared addresses match the electoral roll history.
• Employment verified by the employer directly, income >2.5× annual rent.
• Previous landlord reference clean: no arrears, no notice served, positive comment on tenant conduct.

A "borderline" report:

• Score in the bottom half but no CCJs or IVAs. Might be a young tenant with limited credit history. Consider a guarantor (extra rent in advance is no longer an option, see below).
• One historic CCJ, satisfied, older than 3 years, all other markers clean. Usually acceptable with explanation.

A "decline or condition" report:

• Unsatisfied CCJ in the last 6 years. Serious concern: CCJs are court judgments for unpaid debts.
• Active IVA or bankruptcy. Payment prioritisation goes to the insolvency practitioner; rent is a low-priority creditor.
• Undeclared previous addresses: signals the tenant may be hiding something (often previous eviction).
• Employer refuses to verify, or income under 2.5× rent.
• Score in the bottom 20% with any adverse markers.

If the report is borderline or negative, options are: decline, accept with a UK-based homeowner guarantor (see the Deed of Guarantee template guide), or accept with rent guarantee insurance (which will typically only be available for higher-scoring references).

The RRA rent-in-advance rule (from 1 May 2026)

Historically, landlords with concerns about a tenant’s credit could ask for 6 or 12 months’ rent in advance. Under the Renters’ Rights Act 2025, the only rent you can take in advance is the first rent payment, paid between signing and the start of the tenancy. You can’t take more to offset risk, so the old "rent in advance instead of a guarantor" workaround is closed.

The practical implication in 2026: a guarantor is now the standard risk mitigation for a borderline tenant. Rent guarantee insurance is the second option.

See the rent-in-advance rules guide for the exact wording of the rule.

How to run a check step-by-step

1. 1Tell the applicant in writing that you will run a credit check, and get their agreement: referencing providers require it, and it keeps you transparent under data protection law.
2. 2Collect the tenant referencing form: full name, date of birth, current and previous addresses (3+ years), National Insurance number optional, employer, income.
3. 3Take a holding deposit: max 1 week’s rent. A holding deposit isn’t protected in a deposit scheme. Under the Tenant Fees Act you can keep it if the applicant gave you false or misleading information (for example, an undeclared CCJ).
4. 4Submit the check to your referencing provider, through their portal or through LetCompliance’s referencing.
5. 5Wait 24–72 hours for the report.
6. 6Read the whole report, not just the summary. The narrative section often contains details the summary hides.
7. 7Interpret: clean pass, borderline (require guarantor or RGI), decline.
8. 8Communicate the decision: if you decline and keep the holding deposit, you must give the applicant the reason in writing. Otherwise refund it within 7 days.

Total elapsed time: 2–4 days. Total cost: £25–£45 per tenant.

Sources

• GOV.UK: Tenant Fees Act 2019 guidance
• Information Commissioner’s Office (ICO): Data protection for landlords
• Financial Conduct Authority: Credit reference agencies
• Renters’ Rights Act 2025: Section 7 (rent in advance limit)