Renters (Reform) Bill ‘Blocks Tenants with Non-Standard References’ – Claim

The Renters (Reform) Bill has been hailed as one of the most significant overhauls of the private rental sector in decades, with promises to end Section 21 “no-fault” evictions, impose new obligations on landlords, and rebalance rights in favor of tenants.

However, a growing chorus of critics argues that, far from creating a fairer rental market, the Bill risks excluding many vulnerable renters, particularly those who rely on non-standard references such as guarantors, savings evidence, or support from councils and charities.

This unintended consequence could undermine the very aim of the legislation: to create security and fairness for all renters, regardless of background or circumstance.

The Ambitions of the Renters (Reform) Bill

The Bill proposes several transformative changes, including:

• The abolition of Section 21 evictions.
• Mandatory registration for landlords through a National Property Portal.
• A new ombudsman scheme to handle tenant complaints.
• Standardized tenancy terms and improved conditions.
• A ban on blanket bans of tenants with children or those on benefits.

In theory, this wide-reaching framework is designed to protect tenants from arbitrary eviction and empower them with stronger rights and recourse. The emphasis is on transparency, accountability, and a more equal footing in what has long been a landlord-dominated market.

However, implementation details have triggered unease, particularly around how landlords will assess tenant suitability once Section 21 is removed.

Landlords Seek Greater Control Post-Section 21

Without Section 21, landlords will only be able to evict tenants under specific, justified grounds — such as rent arrears or selling the property. As a result, landlords may become more cautious when selecting tenants at the application stage.

According to many property professionals, this shift is already encouraging landlords to apply stricter screening measures to avoid future disputes or difficulties in regaining possession. Among the most affected are tenants who cannot provide the standard referencing documentation — full-time employment records, stable monthly income, and a clean credit history.

Self-employed tenants, who rely on Universal Credit, use rent guarantors, or receive support from housing charities, may now face more rejections. The fear is that landlords, keen to reduce legal risk, will bypass anyone who doesn’t fit a strict profile, regardless of their actual ability to pay.

Who Are ‘Non-Standard’ Renters?

In the UK’s increasingly diverse rental market, a significant proportion of tenants rely on alternative means of demonstrating affordability or reliability. These include:

• Self-employed individuals with fluctuating income.
• Students who require parental or institutional guarantors.
• Low-income families receiving housing benefits or Universal Credit.
• Freelancers and gig workers without fixed contracts.
• Immigrants and asylum seekers without a UK credit history.
• Elderly tenants rely on savings or pensions.
• Victims of domestic abuse who are rehoused urgently.
• People supported by housing charities or local authority schemes.

For these individuals, conventional referencing often doesn’t reflect their financial resilience or long-term stability. Many have excellent rental histories and long-standing arrangements with previous landlords. Yet, under tighter scrutiny, they may now fall short of rigid requirements.

Evidence of Growing Discrimination

Multiple housing charities, legal experts, and tenant advocacy groups have expressed concern that the Renters (Reform) Bill may unintentionally empower a new wave of discrimination, not through overt bias, but through systemic filtering based on risk aversion.

Already, organizations such as Shelter and Generation Rent report increases in renters being turned away despite offering upfront rent, deposits, and alternative references. With landlords feeling legally cornered once tenancies begin, many are now “playing it safe” by only selecting tenants with traditional employment and a clean credit file.

This, critics say, represents a form of indirect discrimination — potentially violating the Equality Act in spirit if not in letter. While the Bill prohibits outright bans against tenants on benefits or with children, it does little to address the more subtle barriers created by referencing practices.

Risk-Aversion Among Landlords

Landlord forums and industry commentary reveal a trend of increasing caution. Landlords fear becoming locked into difficult tenancies, especially if a future eviction becomes costly, time-consuming, or legally uncertain. In the absence of no-fault routes, they are tightening their selection criteria.

Key concerns include:

• Recovery delays occur hwhentenants default or breach terms.
• Legal ambiguity around what constitutes “serious rent arrears.”
• Costs of going through court-based eviction processes.
• Inability to quickly regain possession to sell or repurpose property.

Consequently, many landlords are setting minimum income thresholds, demanding longer employment history, or asking for multiple months of rent upfront — effectively pricing out non-standard tenants.

Policy & Official Guidance

GOV.UK – A Fairer Private Rented Sector (Renters’ Reform Bill Overview)
Official government white paper on the Renters’ Reform Bill outlining key measures, including the end of Section 21, creation of a national landlord register, and anti-discrimination provisions.

 Recent Reporting & Analysis

Landlord Today – Renters Rights Bill ‘blocks tenants with non‑standard references’, claim
Reports findings from Leaders Romans Group indicating growing rejection of tenants with unconventional income or referencing due to the Bill’s reforms.

The Times – Will reforms be the final nail in the coffin for landlords?
Explores the potential fallout of the Bill for landlords, including challenges in accepting tenants with non-traditional references and reduced legal flexibility.