Moving Home
Financial Preparation Before Renting a Home
Landlords run three checks before accepting a tenant: income (typically three times the monthly rent), credit history, and employment. A thin UK credit history is not an automatic bar; a guarantor or employer reference letter can help.
- Income: typically 3x the monthly rent
- Credit check: thin history is not a bar
- Guarantor option if referencing is difficult
Wisemium's Credit Readiness section gives preparation guidance. Once you move in, add your bills and contracts to track costs and renewals.
Renting preparation
- Income check
- 3x rent
- Credit check
- Soft check by agent
- Right to rent
- Document ready
Example. Your own details appear once you add them.
What referencing checks
Income
Usually 3x rent
- Payslips or an employment letter
- Self-employed: accounts or accountant letter
- Guarantor if income is below the threshold
Credit
Soft or hard search
- Significant adverse credit can be a bar
- Thin history is not automatic rejection
- A guarantor with UK credit can help
Employment
Verified with employer
- Job title and employment status
- Start date and salary
- Permanent or fixed-term contract
The full guide
Before a landlord or letting agent agrees to let you a property, they run a set of checks — usually called referencing. Understanding what is checked and what counts as evidence helps you prepare before you reach the point of a formal offer.
What referencing checks
| Check | What it involves |
|---|---|
| Income check | Confirming your income is usually three times the monthly rent, or more. Payslips or an employment letter are typical evidence. For self-employed applicants, accounts or an accountant's letter. |
| Credit check | A credit reference agency search. Significant adverse credit — defaults, CCJs, bankruptcy — can result in a declined application or a requirement for a guarantor. |
| Employment verification | Confirming your job title, employer and employment status with your employer or via your payslips. |
| Previous landlord reference | A reference from your last landlord confirming rent was paid on time and the tenancy ended without issues. Harder to provide if you are renting for the first time. |
| Right to rent | Under UK law, landlords must check that tenants have the right to live in the UK. A passport, BRP, share code or other eligible document is used. |
If your credit history is limited
A thin or limited credit history — common for people who have not previously borrowed or are new to the UK — can make referencing more difficult but is not an automatic bar. Options that can help:
- A guarantor. A person with an established income and UK credit history who agrees to cover the rent if you cannot. Often a parent or close relative.
- Rent in advance. Offering several months' rent in advance reduces the landlord's risk. This is subject to the landlord agreeing and to deposit cap rules.
- A larger deposit. Not always possible, subject to the deposit cap, but may reassure a landlord.
- A reference letter from your employer. Confirming employment, salary and length of service.
Deposits: how they work in England
In England, a security deposit on an assured shorthold tenancy is capped at five weeks' rent (or six weeks if the annual rent is over £50,000). The landlord must place it in a government-approved deposit protection scheme within 30 days and give you the prescribed information about the scheme. The deposit is returned at the end of the tenancy, minus any deductions for unpaid rent or damage beyond fair wear and tear. If you dispute a deduction, the scheme's dispute resolution service handles it.
Estimating your monthly housing costs
The monthly rent is not the full cost. Budget for:
- Rent.
- Council tax (unless included in the rent, or you are exempt as a student).
- Energy (gas and electricity).
- Water rates (usually included in flats in England; separate for houses).
- Broadband.
- TV Licence (£169.50 a year in 2026) if you watch live TV or use iPlayer.
- Contents insurance.
Adding these up before you commit gives you a realistic picture of what the property actually costs each month. See Setting up household bills in your first flat for what to do once you move in.
Add your bills and contracts to Wisemium to track costs and upcoming renewals.
Wisemium's Credit Readiness check can give goal-specific preparation guidance for renters.
Common questions
What is a holding deposit?
A holding deposit (up to one week's rent in England) can be taken to reserve a property while referencing is completed. It is refunded or put towards the security deposit once the tenancy starts, unless you withdraw your application, fail referencing, or provide false information.
Can a landlord reject me because I have no rental history?
A first-time renter has no landlord reference to provide, which some landlords will treat cautiously. Offering a guarantor, providing a strong employer reference, or approaching landlords directly (rather than through an agent with rigid criteria) can help.
Does a credit check for renting affect my credit score?
The credit check run during referencing is typically a soft search, which does not affect your credit record. Confirm this with the letting agent before it is run. Some referencing companies do run a hard search.
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