Renters’ Rights Act drives landlords towards greater use of guarantors

The Renters’ Rights Act is leading more landlords to seek guarantors from tenants, according to new research from LRG.

More than half of landlords (54%) said they are now more likely to ask for a guarantor when tenants fail standard income checks.

The findings follow changes under the Renters’ Rights Act that stop landlords asking for more than one month’s rent in advance.

LRG said landlords are now looking more closely at income checks and other ways to reduce risk.

But this could make it harder for tenants who do not have family or friends willing to act as guarantors.

The Summer 2026 Lettings Report surveyed 717 landlords and 860 tenants across England and Wales.

Among tenants without a personal guarantor, 51% said they would look for a cheaper property. Another 16% said they would stop searching for a home.

Only 18% would use a paid guarantor service.

Knowledge of these services remains low. Almost three-quarters of tenants (74%) said they had never heard of them.

Another 12% had heard of them but did not know how they worked. A further 12% knew about the services but had never used one.

Just 2% had used a paid guarantor service.

Some 37% of tenants said they had needed a guarantor in the past. Of those, 7% could not find one.

Separate research cited by Housing Hand found that 34% of renters did not know what a guarantor was when first asked for one.

The issue could become more important for letting agents following the Renters’ Rights Act changes.

LRG found that 28% of landlords had not changed how they use guarantors. Another 13% said they had always asked for one when tenants failed income checks.

Only 5% said they had become less likely to ask for a guarantor. These landlords use other options, such as rent guarantee insurance.

The English Housing Survey 2024-25 found that one in five private renters already needed a guarantor before moving home.

Rent guarantee insurance could also play a bigger role. Almost 37% of landlords already have a policy, while another 19% are thinking about getting one.

However, 17% of landlords did not know this type of cover was available.

The findings suggest letting agents may need to give landlords and tenants more information about guarantors and the other options available.

Allison Thompson, chief lettings officer at Leaders, part of LRG, commented “Landlords need confidence that a tenancy is affordable and sustainable, particularly now that rent in advance is no longer available as an additional safeguard. At the same time, tenants who do not have family or friends able to act as a guarantor should not assume they have run out of options.

“Our research shows there is a real opportunity to make people more aware of professional guarantor services and rent guarantee insurance. By explaining those choices early, we can help landlords make informed decisions while giving more tenants a fair opportunity to find the right home.”