Rent guarantor demand up 50% since Renters’ Rights Act, firm reports
UKPulse Property Desk
Demand for rent guarantors has increased by over 50% in the first 100 days since the Renters’ Rights Act came into force, according to Housing Hand. This rise is attributed to landlords and letting agents adapting their risk assessments under the new legislation.
- Demand for rent guarantors has risen by more than 50% since the Renters’ Rights Act was implemented on 1 May.
- The increase was recorded by guarantor provider Housing Hand during the first 100 days after the legislation took effect.
- Housing Hand believes the rise reflects changes in how landlords are managing tenant risk, including restrictions on upfront rent payments.
Demand for rent guarantors has increased by over 50% since the Renters’ Rights Act came into force, according to new figures from Housing Hand. The guarantor provider observed this rise in applications during the first 100 days following the legislation's implementation on 1 May.
Housing Hand suggests this surge reflects how landlords and letting agents are assessing and managing tenant risk under the new rules. Restrictions on taking more than one month's rent in advance have led to a greater focus on alternative forms of financial security, such as guarantors.
Graham Hayward, managing director of Housing Hand, stated that landlords are now asking renters for guarantors instead, as they can no longer request or take more than one month's rent upfront. Despite the sharp increase in guarantor applications, Housing Hand reports that claims for unpaid rent have not seen a corresponding rise, with overall payout volumes remaining broadly static.
Why this matters: The figures offer an early indication of how landlords and letting agents are adjusting their risk assessments following the introduction of the Renters’ Rights Act.
What this means for you: If you are a renter, you may find that landlords or letting agents are more likely to request a rent guarantor as part of the referencing process.