Viewings, referencing and holding deposits

Once your rental application is accepted, you enter a critical phase: the landlord or letting agent will conduct referencing checks, and you will pay a holding deposit to reserve the property. Understanding the rules and timelines for this stage helps you move smoothly toward signing your tenancy agreement.

What is referencing?

Referencing is the process by which landlords and letting agents assess whether you are a suitable tenant. They verify your identity, check your financial stability, confirm your employment, and review your rental history. The whole process typically takes a few days to a couple of weeks, depending on how quickly previous landlords and employers respond.

Credit checks

A credit check looks at your credit history and reports any missed payments, defaults, County Court Judgments (CCJs), or insolvencies. Most checks are soft credit checks, which do not affect your credit score. Landlords must ask your written permission before running a credit check. If you live in the UK, the agency can access your credit file through credit reference companies like Equifax or Experian. If you are new to the UK, you may not have a credit history yet—this is not your fault, and you have options to work around it (see the section on guarantors and advance rent, below).

Employer references and proof of income

Landlords will contact your employer to confirm you work there, your salary, and your contract type. You will also need to provide proof of income, such as recent payslips (usually three months' worth), a bank statement, or a letter from your employer on company letterhead. Most landlords expect your monthly gross income to be at least 2.5 times the monthly rent, or your annual salary to be at least 30 times the monthly rent. If you are self-employed or retired, you can provide tax returns, pension statements, or proof of regular savings instead.

Previous landlord references

If you have rented before in the UK, landlords will contact your previous landlord to ask whether you paid rent on time and looked after the property. If this is your first time renting in the UK, you cannot provide a landlord reference. In that case, you may be asked for a character reference from someone who has known you for at least two years and is not a relative, or you may need a guarantor (see below).

Right to rent checks

Landlords and agents are legally required to check that you have the right to live and work in the UK. This involves verifying your identity and immigration status. If you are a British citizen, you can provide your passport or driving licence. If you are from overseas, you will need a valid visa, eVisa, Biometric Residence Permit (BRP), or evidence of the right to remain (such as a Home Office share code for EU Settlement Scheme holders). All tenants aged 18 or older must undergo this check.

Holding deposits and the 15-day deadline

Once your application is accepted and before the tenancy agreement is signed, you will pay a holding deposit. This is money held by the landlord or agent to reserve the property while referencing and other checks are completed.

How much is the holding deposit?

Under the Tenant Fees Act 2019, a holding deposit is capped at one week's rent. To calculate one week's rent, the monthly rent is multiplied by 12 and divided by 52. For example, if the monthly rent is £1,200, one week's rent is roughly £277. Any holding deposit above this cap is illegal, and you should report it to your local council's Trading Standards team.

The 15-day deadline and refunds

The standard deadline for the landlord and tenant to agree on a tenancy is 15 days from when you pay the holding deposit, unless you agree in writing to a different date. If the tenancy agreement is signed within this period, the holding deposit is put towards your first month's rent or your tenancy deposit. If the deadline passes and no tenancy is agreed, or if the landlord decides not to rent to you, your holding deposit must be refunded within 7 days.

What fees are banned?

The Tenant Fees Act 2019 bans many upfront fees that were once common in the UK rental market. Landlords and letting agents cannot charge you for any of the following:

• Referencing or credit check fees
• Administration or contract preparation fees
• Viewing fees
• Inventory check or check-in fees
• Tenancy renewal fees
• Check-out or end-of-tenancy fees

If an agent or landlord asks you to pay any of these fees, they are breaking the law. You should ask them to clarify what the fee is for, and if they persist, contact your local council or Citizens Advice. These rules apply to all assured shorthold tenancies in England that began on or after 1 June 2019.

Guarantors and proving you can pay rent

If you do not have a UK credit history, have limited or poor rental references, or your income is borderline, a landlord may ask you to provide a guarantor. This is particularly common for students, recent arrivals to the UK, and self-employed individuals.

Who can be a guarantor?

A guarantor is someone who legally agrees to pay your rent and other tenancy obligations if you cannot. The guarantor is usually a UK resident aged 18 or older, often a parent, relative, or close friend. They do not have to be a homeowner, but most landlords prefer it. The guarantor must pass their own referencing, including a credit check, employer reference, and proof of income. They typically need to earn at least 2 to 3 times the annual rent of the property, and they must have a clean UK credit history with no recent defaults or County Court Judgments.

Challenges for overseas tenants and expats

If you are moving to the UK from overseas, finding a UK guarantor can be difficult. Your family may live abroad and may not meet UK credit requirements. In this case, you have a few options. First, some property companies and banks offer commercial guarantor services (such as Housing Hand) that provide a UK-based guarantee for a fee. Second, if your new employer is willing to write a strong employment letter and confirm your salary, some landlords may waive the guarantor requirement. Third, you can approach direct landlords (rather than letting agents) who may be more flexible. However, be aware that since 2019, landlords are no longer allowed to require you to pay several months' rent in advance as an alternative to referencing or a guarantor—this is a banned practice.

Your National Insurance number and identity

During referencing, landlords will ask for your National Insurance number (NINO), which is a unique nine-character identifier used for UK tax and benefits administration. They may also ask for your passport, driving licence, or a Home Office share code (if you have applied for settled or pre-settled status under the EU Settlement Scheme). Your National Insurance number helps the landlord verify your identity, confirm your right to work and reside in the UK, and conduct credit and background checks. If you do not yet have a National Insurance number but are planning to work in the UK, you should apply for one as soon as possible—it is free and an essential document for employment and renting. If you are a new resident from overseas and do not have a NINO, you can apply online through the UK government website or by calling the National Insurance Number Application Helpline.

Timeline and next steps

Referencing usually takes between a few days and two weeks. The speed depends on how quickly your employer and previous landlord respond to the agent's enquiries. Some agents use Open Banking technology to speed up proof of income—you can securely share your bank data directly, which may be faster than collecting payslips. Once referencing is complete and you have passed all checks, the agent will ask you to sign the tenancy agreement. The holding deposit is then credited towards your first month's rent or your tenancy deposit. If you fail referencing, the holding deposit is typically returned, though this depends on the reason for the failure and the terms you agreed when you paid it.

Understand what documents to gather early—payslips, proof of identity, your National Insurance number, and contact details for your employer and any previous landlord. This helps you move through referencing faster and shows the landlord you are organised and serious about the application.