Guarantor reliance surges as renters face growing affordability pressures

Guarantor reliance for tenants has doubled in the last 18 months as landlords look for greater financial security.

Data from HomeLet reveals the share of accepted applications requiring a guarantor has risen from around 9% in January 2025 to 18.4% in July 2026, with almost one in five lets now agreed with a guarantor in place.

Under the Renters’ Rights Act, landlords and agents can no longer require several months’ rent upfront. Once a tenancy agreement has been signed they may require no more than the initial month’s rent before occupation, although a tenant can voluntarily choose to pay rent early once the tenancy has begun.

Guarantor usage has been climbing

According to the data, guarantor usage has been climbing more rapidly in 2026, rising from 11.4% of applications in January 2026 to 18.4% by July 2026.

The proportion of accepted applications with a guarantor has also risen from 16.7% in June 2026 to 18.4% in July 2026.

The data also reveals affordability pressures for tenants, with renters now typically spending around a third of their income on rent when starting a new tenancy.

Rents also continue to rise, with average UK rents reaching £1,369 in July 2026.

Mike Dawson, head of sales at Barbon Insurance Group, explains: “What we are seeing is that guarantors are no longer the exception and the story behind that shift is affordability. In many parts of the country, including London, a typical tenant is now committing a very substantial share of their income to rent when a tenancy begins.

“While Renters Rights and the ban on rent in advance have added a further dimension, our data shows this is on top of the longer term trend. As these pressures build, it’s clear that headline income and headline rent only tell part of the story about whether a tenancy is sustainable.

“Understanding how much headroom there is in a tenant’s overall finances over the life of the tenancy is becoming just as important. For agents and landlords, that goes to the heart of how you assess tenants and choose between applicants in a way that is fair, evidence based and gives each tenancy the best chance of succeeding.”

Overseas tenants struggling to provide a guarantor

The news comes as overseas tenants are struggling to provide a UK-based guarantor despite being able to afford the rent.

According to data from Zero Deposit, London rents have increased by almost 10% (9.9%) in the two years since May 2024, rising from an average of £2,088 to £2,294.

Data from Foxtons reveals that almost two-thirds (63%) of its tenants come from overseas, meaning many international renters may struggle to provide a UK-based guarantor despite being able to afford the rent.