A new report indicates that the Renters' Rights Act is prompting more landlords to request guarantors from prospective tenants. Research from LRG found that 54% of landlords are now more inclined to seek a guarantor if tenants do not pass standard income checks.
This shift follows changes under the Renters' Rights Act, which prevents landlords from asking for more than one month's rent in advance. LRG suggests landlords are now focusing more on income verification and other methods to mitigate risk.
The findings also suggest potential challenges for tenants without family or friends able to act as guarantors. Among tenants without a personal guarantor, 51% stated they would look for a cheaper property, while 16% would stop their home search. Only 2% of tenants surveyed had used a paid guarantor service, and 74% were unaware of such services.
The English Housing Survey 2024-25 previously found that one in five private renters already required a guarantor before moving. Rent guarantee insurance could also become more prominent, with 37% of landlords already holding a policy and 19% considering one.