Charity warns over increased reliance on guarantors under reforms

A charity has warned that guarantors could become a default requirement for low-income tenants following the ban on rent in advance.

In a guest blog post for Crisis, published by the TDS Charitable Foundation, it said landlords should not have to choose between managing risk and being accessible.

The comments come as the Renters’ Rights Act came into force on 1 May 2026.

Guarantor requirements can create barriers

According to the TDS Charitable Foundation, 91% of landlords who let to local authorities, including homeless households and people receiving benefits, report satisfaction in their role, compared with 63% of landlords overall.

Tenants receiving benefits are also 10% more likely to remain in their homes for three or more years, offering landlords more stable, long-term occupancy.

However, under the Renters’ Rights Act, landlords and letting agents can no longer accept rent in advance.

The charity says many tenants will welcome the change, but warns that guarantors could become the default alternative.

Dr Jennifer Harris, head of policy, research and social impact at the TDS Charitable Foundation, said: “The Renters’ Rights Act introduces a cap on upfront rent, a change many tenants will welcome, given that 17% of tenants nationally identify it as a barrier to accessing a home, according to the TDS Charitable Foundation’s national Voice of the Tenant survey.

“But if guarantors simply become the default replacement, the barrier doesn’t disappear, it shifts. People on lower incomes or with experience of homelessness are often unable to provide a guarantor, and our research shows guarantor requirements create real access barriers for around one in ten tenants.”

Clear communication to landlords

Dr Harris added that when asked what would encourage them to let to people moving out of homelessness, more than a third of landlords said a rent guarantee scheme would be their preferred incentive.

She said: “The message to landlords is clear: you don’t have to choose between managing risk and being accessible.”

The research also claims there is “no evidence of a mass landlord exodus”, but points to data showing that 20% of landlords letting to housing benefit tenants had sold at least one property. By 2025, that figure had risen to 37%.

The charity is urging the government to better understand what is driving landlord exits from the affordable end of the market, and is also calling for Local Housing Allowance (LHA) rates to be restored.

Dr Harris said: “In our Voice of the Landlord survey, a quarter of landlords said they felt unable to rent to people receiving benefits, and half cited the growing gap between LHA rates and market rents as a reason why. Restoring LHA rates to a level that reflects actual rents is therefore vital to protect the supply of affordable PRS housing.

“Clear communication to landlords about their Renters’ Rights Act obligations, along with ongoing monitoring of supply, will both be essential to prevent the Act from accelerating the very exits it is intended to prevent.”