More than half of landlords are now more likely to request a guarantor from tenants who do not comfortably meet standard affordability checks, according to new research from LRG.
The shift comes as property owners can no longer request more than one month’s rent in advance under the Renters’ Rights Act, removing what many considered an additional financial safeguard.
The research found that 28% of landlords reported their approach had not changed, while 13% had always required a guarantor in circumstances where tenants failed to meet affordability criteria.
Impact on tenant behaviour
The study revealed that 51% of tenants who do not have access to a guarantor would seek a cheaper property if asked for one by landlords or letting agents. A further 16% said they would stop their property search entirely.
Allison Thompson, Chief Lettings Officer at Leaders, said: “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.”
Low awareness of alternative services
LRG identified what it described as “a significant gap in awareness” of professional guarantor services among tenants. Only 18% of respondents said they would use a professional guarantor service if family or friends were unavailable, while 74% were unaware such services existed.
The findings suggest the rental market may face additional friction as landlords seek alternative risk mitigation measures following regulatory changes affecting the lettings process. The requirement for guarantors could potentially restrict access to rental properties for certain tenant groups, particularly those without established support networks.
The data indicates that both landlords and tenants are adjusting to new rental market conditions, with implications for housing accessibility and investment risk management in the private rental sector.
