Government claim blanket guarantor requirements could hinder tenants

The government claim a guarantor can act as a barrier to renting for some tenants.

In answer to a written question, Housing Minister Matthew Pennycook says landlords and letting agents must consider a tenant’s individual circumstances and will monitor the use of guarantors.

According to the English Private Landlord survey, nearly a quarter (21%) of landlords asked for a guarantor.

Guarantor could act as a barrier to renting

Liberal Democrat MP Mike Martin asked the government: “What recent assessment has been made of the potential impact of guarantor requirements in the private rented sector on prospective tenants who can demonstrate affordability but do not have access to a suitable guarantor?”

In response, Mr Pennycook claimed there are options available to tenants who do not have a guarantor, but landlords and agents should consider individual circumstances.

He said: “The government recognises that blanket requirements for a guarantor could act as a barrier to renting for some tenants and expects landlords and agents to consider tenants’ individual circumstances when negotiating rental conditions.

“We are committed to monitoring the use of guarantors as part of our wider evaluation of the impact of our reforms on the private rented sector.

“Where a landlord or agent is not satisfied by the outcome of pre-tenancy checks, they may ask a prospective tenant to provide a guarantor. If this is not possible, then a tenant may choose to use a professional guarantor service as an alternative. Local authorities may offer guarantee schemes to help people on low incomes or at risk of homelessness.”

Last year, the government confirmed rental payment history would not be used as mandatory proof of affordability for tenancy agreements.

Mr Pennycook has also previously said there is no “one-size-fits-all approach for landlords” when determining whether a tenancy is suitable.