Open Banking
Quick answer
A regulated framework, overseen by the FCA, that lets a person securely share their bank data or authorise payments through approved third parties. In lettings it powers rent-payment tools, faster reconciliation of rent received, income verification in referencing, and rent-reporting services that read verified rent payments.
At a glance
- Regulated by
- The FCA (authorised third parties)
- Lettings uses
- Rent reconciliation, referencing, rent reporting
Full guide
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Open full guideWhy Open Banking matters for landlords
Open banking is quietly reshaping the back office of letting: instead of manually matching bank statements to tenancies, a connected tool can flag the moment rent is late — the trigger that matters most for arrears and any later Section 8 case. It also lets referencing providers verify a tenant’s real income and rent-reporting services confirm on-time payments to credit files. Because it is consent-based and FCA-regulated, the data is shared securely and only with the tenant’s explicit authorisation.
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Official sources
LetCompliance editorial reviews this entry every quarter against the sources above. Always confirm specific duties with a qualified solicitor or your local council.
Related terms
Let Property Campaign
An HMRC disclosure facility that lets UK residential landlords come forward voluntarily about undeclared rental income from earlier years. In return for disclosing before HMRC opens an enquiry, landlords self-assess a reduced penalty: as low as 0% where there is a reasonable excuse, typically around 10–20% for an unprompted careless disclosure, rising toward 100% of the tax for deliberate concealment that HMRC discovers first. After registering an intention to disclose, the landlord has 90 days to calculate and pay the tax, interest and penalty.
Property Redress Scheme
A government-approved ombudsman scheme for property-related complaints. Letting agents in England must be members of a redress scheme (The Property Ombudsman or Property Redress Scheme). The Renters’ Rights Act 2025 provides for a separate Landlord Ombudsman that private landlords will have to join, but that scheme is not open — the Government’s roadmap expects mandatory membership in 2028.
Accelerated Possession
A fast-track court procedure used under a Section 21 notice in England and Wales. Abolished for new claims from 1 May 2026 because Section 21 no longer exists. Possession is now pursued under Section 8 using a specified ground.
AST (Assured Shorthold Tenancy)
The most common form of private tenancy in England. From 1 May 2026 all existing ASTs converted to assured periodic tenancies under the Renters Rights Act 2025, and new fixed-term ASTs can no longer be created for most residential lets.
Arrears (Rent Arrears)
Unpaid rent that is past its due date. Ground 8 of Schedule 2 to the Housing Act 1988 (mandatory) requires at least 3 months of rent arrears under the Renters Rights Act 2025 (previously 2 months). Grounds 10 and 11 remain as discretionary grounds.
Awaab's Law
Statutory timescales for investigating and remedying hazards such as damp and mould, named after Awaab Ishak. In force for social landlords since 27 October 2025. The Renters’ Rights Act 2025 gives the power to extend it to the private rented sector, but the PRS regulations have not been made — that is Phase 3 of the Government’s rollout, so no Awaab’s Law deadline binds a private landlord today.