The Renters' Rights Act, which prevents landlords and agents from accepting large amounts of rent in advance, is leading to an increase in requests for guarantors. According to Housing Hand's Understanding Renters in 2026 report, over a third of tenants (37%) did not know what a guarantor was before being asked to provide one.
The report also indicates that 31% of renters only discovered they needed a guarantor after locating a property they wished to rent. Graham Hayward, Managing Director of Housing Hand, stated that the ban on rent in advance is driving this demand, as landlords seek alternative forms of security to protect their investments.
Data from Housing Hand further reveals that 46% of renters would not know what to do if they were unable to pay their rent, and one in three renters (33%) do not plan their future finances. Additionally, overseas tenants are reportedly finding it difficult to provide a UK-based guarantor, even if they can afford the rent.
London rents have increased by 9.9% in the two years since May 2024, rising from an average of £2,088 to £2,294, according to Zero Deposit data. Foxtons data shows that almost two-thirds (63%) of its tenants are from overseas, suggesting many international renters may face challenges in providing a UK-based guarantor.