Demand for rent guarantors has jumped by more than 50% since the Renters’ Rights Act came into force, according to new figures from Housing Hand.

The guarantor provider recorded the increase in applications during the first 100 days following implementation of the legislation on 1 May.

Housing Hand believes the rise reflects changes in how landlords and letting agents are assessing and managing tenant risk under the new regulatory regime.

Restrictions on taking more than one month’s rent in advance have increased the focus on alternative forms of financial security, including guarantors.

Graham Hayward, managing director of Housing Hand, said: “Most landlords can’t request or take more than one month’s rent upfront anymore, so they’re asking renters to provide guarantors instead.”

The figures suggest guarantors are becoming a more prominent part of the referencing process as landlords adjust to the legislation.

Housing Hand also reported increased demand for checks covering sanctions, politically exposed persons and sources of income.

However, the sharp increase in guarantor applications has not resulted in a corresponding rise in claims for unpaid rent.

Housing Hand said it has paid around £7m to accommodation providers over the past five years. Annual payouts have averaged approximately £1.5m and, according to the company, that level has remained broadly unchanged.

Hayward said: “The overall volume of payouts remains pretty static.”

He added that the rental market had changed significantly since the legislation took effect, contributing to increased demand for guarantors.

The figures provide an early indication of how landlords and letting agents are adapting their risk assessments following the implementation of the Renters’ Rights Act.