Tenant affordability checks after the Renters' Rights Act: how to check income fairly

Short answer: You can still check whether a tenant can afford the rent, but you must apply the same test to everyone and count income from benefits in the same way as wages. Since 1 May 2026 in England you can't accept bids above the advertised rent, and you can only take up to one month's rent (or 28 days' rent) after the tenancy agreement is signed. That makes a clear, evidence-based affordability check more important than ever. Ask for the same documents from every applicant, verify them, and record why you made your decision.

Why affordability checks matter more now

The Renters' Rights Act 2025 changed how landlords in England choose tenants. Three changes matter most for affordability:

• No rental bidding. You must state a rent in written adverts and can't invite, encourage or accept offers above it ( GOV.UK ). You can no longer pick the applicant who offers the most.
• Limits on rent in advance. You can't ask for or accept rent before the tenancy agreement is signed. Between signing and the start date you can usually ask for one month's rent, or 28 days' rent if rent isn't paid monthly ( GOV.UK ). Large upfront payments can no longer make up for weak income.
• No discrimination against people on benefits or with children. If you check affordability, you must include benefit income in the same way as other income ( GOV.UK ). The penalty is up to £7,000.

Landlords are responding by becoming more careful. Early findings from Goodlord's State of the Industry survey of 3,000 agents, landlords and tenants, reported by Landlord Today on 23 October 2026 , found that 26% of landlords are more likely to reject applicants they would previously have accepted, 51% of agents are more cautious when recommending applicants, and 31% of landlords would rather leave a property empty while waiting for a lower-risk applicant. The full report is due on 29 October 2026.

Being careful is fine. Being careful in a way that unfairly screens people out is not. The answer is a consistent check based on evidence.

What a fair affordability check looks like

1. Set your test before you advertise

Decide what you'll look at and write it down. Many landlords and referencing firms use a rent-to-income multiple, such as annual income of around 30 times the monthly rent. That's an industry convention, not a legal rule, so you can set your own. Whatever you choose, apply it to every applicant and include all reliable income.

2. Count all reliable income

Include:

• salary or wages (after checking payslips)
• self-employed income (accounts, tax returns or a reference from an accountant)
• pensions
• benefits, including Universal Credit, Child Benefit, Personal Independence Payment and the housing element of Universal Credit
• regular maintenance or other steady income

GOV.UK is clear that if you check affordability, benefit income must be counted in the same way as other income.

3. Ask every applicant for the same evidence

A simple standard list:

• the last three months' payslips, or equivalent evidence for self-employed or benefit income [FACT-CHECK: three months is common practice, not a legal requirement]
• the last three months' bank statements showing the income arriving
• an employer reference confirming role, salary and contract type
• a previous landlord reference confirming rent was paid

4. Verify, don't just collect

Documents can be edited. Check that:

• the employer on the payslip matches the employer reference
• the net pay on payslips appears on the bank statements
• dates, names and figures are consistent

At mychecksai, tenants upload payslips and bank statements securely and a person reviews them against the employer reference. We don't connect to bank accounts.

5. Look at the whole picture

Affordability is more than one number. Consider existing rent history, regular commitments visible on statements, savings, and whether a guarantor is available. A guarantor should be referenced to the same standard as the tenant.

6. Record your reasons

Keep a short note of which test you applied and why you accepted or declined. If a council ever asks whether you discriminated, a consistent written process is your best evidence.

Choosing between several suitable applicants

Without bidding, you may have two or more applicants who both pass. Fair ways to choose include the order applications were completed, the strength of their references, and the move-in date that suits you. Avoid any reason linked to having children or receiving benefits.

Common mistakes to avoid

• "Working tenants only" or "no DSS" wording. This is now unlawful in England.
• Ignoring benefit income. Leaving out Universal Credit or Child Benefit when you calculate income is treated as discrimination.
• Asking for lots of rent upfront. You can't take rent before signing, or more than the permitted amount in the pre-tenancy period.
• Different rules for different applicants. Asking one person for six months' statements and another for none is hard to defend.
• Relying on a score you don't understand. Make sure you can see the evidence behind any pass or fail.

FAQs

Can I still do an affordability check after the Renters' Rights Act?

Yes. GOV.UK's guidance allows affordability checks, as long as income from benefits is counted in the same way as other income.

Is there a legal income-to-rent ratio?

No legal ratio is set by the Act [FACT-CHECK]. Many providers use around 30 times the monthly rent a year as a guide.

Can I ask for more rent upfront if a tenant's income is low?

Not before the agreement is signed. After signing and before the tenancy starts, you can usually ask for up to one month's rent, or 28 days' rent if rent isn't paid monthly.

Can I ask for a guarantor?

Yes, as long as you ask on a consistent basis and don't single out people because they're on benefits or have children [FACT-CHECK: confirm against GOV.UK discrimination guidance].

Does mychecksai use open banking for income checks?

No. Tenants upload payslips and bank statements securely and a person reviews them.

Who makes the final decision?

You do. A reference gives you verified evidence. The letting decision is yours.

Get the evidence without the chasing

mychecksai collects ID, Right to Rent evidence, AML and PEPs and insolvency checks, employer references , former landlord references and reviewed income documents in one emailed report, for £29 including VAT per person, with no account needed. See pricing or read more about what the Renters' Rights Act means for tenant vetting .

Sources

• GOV.UK, Renters' Rights Act: an overview for landlords: https://www.gov.uk/guidance/renters-rights-act-an-overview-for-landlords
• GOV.UK, Rent in advance and deposits: https://www.gov.uk/assured-tenancy-agreements-a-guide-for-landlords/rent-in-advance-and-deposits
• GOV.UK, Rental discrimination: if someone who gets benefits wants to rent your property: https://www.gov.uk/rental-discrimination-landlords/if-someone-who-gets-benefits-wants-to-rent-your-property
• Renters' Rights Act 2025, section 56 (rental bidding): https://www.legislation.gov.uk/ukpga/2025/26/section/56
• Landlord Today, "One in four landlords reject tenants they would previously accept" (23 October 2026): https://www.landlordtoday.co.uk/breaking-news/2026/10/one-in-four-landlords-reject-tenants-they-would-previously-accept/