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Guarantor gap limits tenant housing choices, research suggests

Research indicates that tenants without family or friends to act as guarantors may face limited housing options, with many opting for cheaper properties or abandoning their search.

  • Over half of surveyed tenants (51%) would seek a cheaper property if they needed a guarantor and could not find one.
  • Nearly three-quarters of tenants (74%) have never heard of professional guarantor services.
  • 54% of landlords are now more likely to request a guarantor if an applicant does not meet affordability checks.

Tenants who lack family or friends willing to act as guarantors could be narrowing their housing choices, according to new research. More than half of surveyed tenants (51%) stated they would look for a cheaper property if they required a guarantor and could not find someone they knew to assist.

The LRG's Summer 2026 Lettings Report, which questioned 717 landlords and 860 tenants across England and Wales, also found that 16% of tenants would abandon their property search entirely. Only 18% would consider using a professional guarantor service.

Guarantor awareness remains low among tenants, with 74% reporting they had never heard of professional guarantor services. Another 12% knew they existed but lacked details, and only 2% had used one. Among the 37% of tenants who had needed a guarantor at some point, 7% were unable to find one.

Landlords are increasingly seeking guarantors, with 54% now more likely to request one if an applicant does not comfortably meet standard affordability checks. Allison Thompson, chief lettings officer at Leaders, part of LRG, noted that landlords need confidence in a tenancy's affordability, especially since rent in advance is no longer an additional safeguard.

The findings suggest a need for clearer information about alternatives for both tenants and landlords, as guarantors become more crucial in the application process. Rent guarantee insurance is also growing, with nearly 37% of landlords already having it in place and 19% considering it.

Why this matters: The increasing reliance on guarantors by landlords, coupled with low awareness of professional guarantor services among tenants, could create significant barriers for many seeking rental properties.

What this means for you: If you are a tenant without a personal guarantor, you may find your housing options limited or need to consider professional guarantor services, which many tenants are currently unaware of. Landlords are increasingly likely to request a guarantor if you do not comfortably meet affordability checks.

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