0:01 AM, 4th December 2025, About 2 months ago 11
Text Size
Categories:
The government has confirmed rental payment history will not be used as mandatory proof of affordability for tenancy agreements.
In response to a written question, Housing Minister Matthew Pennycook said there is no “one-size-fits-all approach for landlords” when determining whether a tenancy is suitable.
Many landlords ask for a guarantor to provide financial protection, particularly when dealing with tenants who may face financial difficulties, have poor credit, or lack stable employment.
Liberal Democrat MP Edward Morello asked whether the Ministry of Housing, Communities and Local Government would bring forward legislative proposals requiring landlords and agents to accept rental payment history as proof of affordability.
In response, Mr Pennycook said the government would not mandate rental payment history as proof of affordability.
He said: “There is no one-size-fits-all approach to determining whether any given tenancy will be sustainable and good landlords already assess tenant suitability on the basis of individual’s circumstances.
“Landlords and agents remain free to undertake referencing and affordability checks with a view to ascertaining whether a tenancy is sustainable. This may include a history of rental payments, but other available referencing criteria can also be taken into account.”
He adds: “Where a private landlord or agent is not satisfied by the outcome of pre-tenancy checks, there remain options available to provide further reassurance such as requiring a tenant to provide a guarantor.
“Professional guarantor services are also available and can help prospective tenants acquire a guarantor in circumstances where they otherwise would not have been able to do so. Local authorities may also offer guarantee schemes or assistance with rent payments to help people on low incomes or at risk of homelessness to secure a property.
“The government has no current plans to legislate to require social or private landlords and agents to accept rental payment history as proof of affordability.”
Property118 commercial reality check
The government’s position reinforces a basic commercial truth. Landlords cannot outsource judgement to a single metric. Referencing must remain a disciplined risk filter shaped by your portfolio strategy, gearing level and appetite for arrears exposure. Noise comes and goes. Numbers tell the real story.
What serious landlords should do next
Tighten your referencing framework. Define clear affordability thresholds, income multiples and red-flag triggers that fit your own business model. A structured decision matrix reduces disputes, delays and emotional pressure.
Document and audit readiness. Keep a current pack of portfolio data, arrears history and tenancy performance so you can benchmark new applicants against your own proven risk indicators rather than relying on generic templates.
Strengthen your guarantor criteria. Set clear income levels, residency requirements and verification standards. A strong guarantor is a commercial safeguard, not an optional extra, and your criteria should reflect real portfolio risk.
Advantage through professionalism
Professional landlords stay ahead by applying consistent rules, recording outcomes and choosing certainty over hope. Control comes from structure. Structure delivers resilience.
Every day, landlords who want to influence policy and share real-world experience add their voice here. Your perspective helps keep the debate balanced.
Not a member yet? Join In Seconds
Login with
Robert
Read Full Bio
You're Missing Out!
Members can reply to discussions, connect with experienced landlords, and access full member profiles showing years of expertise. Don't stay on the sidelines - join the UK's most active landlord community today.
Not a member yet? Join In Seconds
Login with
Member Since February 2017 - Comments: 57
9:48 AM, 4th December 2025, About 2 months ago
I thought that guarantors are only valid for 6 months under the RRA. I also thought that rent guarantee insurance is only available to tenants who already meet affordability. I am struggling to see the relevance of guarantors anymore.
Could we please have an article on how guarantors will work under the RRA?
Reluctant Landlord
You're Missing Out!
Members can reply to discussions, connect with experienced landlords, and access full member profiles showing years of expertise. Don't stay on the sidelines - join the UK's most active landlord community today.
Not a member yet? Join In Seconds
Login with
Member Since September 2018 - Comments: 3443 - Articles: 5
10:22 AM, 4th December 2025, About 2 months ago
Reply to the comment left by Robert at 04/12/2025 – 09:48
my thoughts exactly. Currently in the process of taking on a tenant who will need a guarantor now and completely baffled as to how what effect this will have now AND from May 1st when tenancies go periodic.
Is there things I need to be putting in the guarantor form and current AST that make clear what happens post May 1st???
David
Read Full Bio
You're Missing Out!
Members can reply to discussions, connect with experienced landlords, and access full member profiles showing years of expertise. Don't stay on the sidelines - join the UK's most active landlord community today.
Not a member yet? Join In Seconds
Login with
Member Since April 2018 - Comments: 291
10:46 AM, 4th December 2025, About 2 months ago
Never ends does it.It will just be a stream of new anti landlord regulations that will be waved through.
Cathie
Read Full Bio
You're Missing Out!
Members can reply to discussions, connect with experienced landlords, and access full member profiles showing years of expertise. Don't stay on the sidelines - join the UK's most active landlord community today.
Not a member yet? Join In Seconds
Login with
Member Since October 2017 - Comments: 96
11:12 AM, 4th December 2025, About 2 months ago
Reply to the comment left by Robert at 04/12/2025 – 09:48
I think that was an amendment that wasn’t upheld. Depending on the wording of your guarantor deed it should be for the whole tenancy period.
Reluctant Landlord
You're Missing Out!
Members can reply to discussions, connect with experienced landlords, and access full member profiles showing years of expertise. Don't stay on the sidelines - join the UK's most active landlord community today.
Not a member yet? Join In Seconds
Login with
Member Since September 2018 - Comments: 3443 - Articles: 5
11:19 AM, 4th December 2025, About 2 months ago
“There is no one-size-fits-all approach to determining whether any given tenancy will be sustainable and good landlords already assess tenant suitability on the basis of individual’s circumstances.
How can you determine if a tenancy is sustainable if post RRA the tenancy becomes monthly periodic?
In fact, you could argue that as a benefit tenant is paid a month in arrears, then at that time a tenancy is offered, it is by default unsustainable precisely because there is NO evidence at the time that the tenant can afford the rent going forward.
A change of circumstance can only be made AFTER the tenant has moved into the property. The DWP then assess what rent contribution it will make. Only the tenant is informed- not the landlord.
Risk assessment is based on know facts at the precise point in time, not on possible potentials.
The request for a guarantor can therefore be justified as a result in such cases. If one cannot be provided, the landlord is justified in not being able to offer a tenancy.
Paul Essex
Read Full Bio
You're Missing Out!
Members can reply to discussions, connect with experienced landlords, and access full member profiles showing years of expertise. Don't stay on the sidelines - join the UK's most active landlord community today.
Not a member yet? Join In Seconds
Login with
Member Since June 2019 - Comments: 716
12:44 PM, 4th December 2025, About 2 months ago
I think this is actually a positive as it means we can set our own definition of affordability. If this became law we could have to compensate anyone we rejected on affordability grounds if this ‘previous record’ of affordability became law (note of course that a previous rent could have been significantly lower).
Reluctant Landlord
You're Missing Out!
Members can reply to discussions, connect with experienced landlords, and access full member profiles showing years of expertise. Don't stay on the sidelines - join the UK's most active landlord community today.
Not a member yet? Join In Seconds
Login with
Member Since September 2018 - Comments: 3443 - Articles: 5
16:53 PM, 4th December 2025, About 2 months ago
Reply to the comment left by Paul Essex at 04/12/2025 – 12:44
hmmm.
Pennycrook confirms that offering a tenancy is not just an income related assessment….. “There is no one-size-fits-all approach to determining whether any given tenancy will be sustainable and good landlords already assess tenant suitability on the basis of individual’s circumstances.
“Landlords and agents remain free to undertake referencing AND affordability checks with a view to ascertaining whether a tenancy is sustainable. “Where a private landlord or agent is not satisfied by the outcome of pre-tenancy checks, there remain options available to provide further reassurance such as requiring a tenant to provide a guarantor.
“Professional guarantor services are also available and can help prospective tenants acquire a guarantor in circumstances where they otherwise would not have been able to do so.
So it IS viable and RRA ‘compliant’ to ask for a guarantor even if the affordability criteria is met if there are other specific considerations (risks) that warrant and can justify the requirement.
I suggest a time limited PIP benefit could be a perfectly justified reason to require a guarantor as an example.
GlanACC
Read Full Bio
You're Missing Out!
Members can reply to discussions, connect with experienced landlords, and access full member profiles showing years of expertise. Don't stay on the sidelines - join the UK's most active landlord community today.
Not a member yet? Join In Seconds
Login with
Member Since March 2023 - Comments: 1486
20:58 PM, 4th December 2025, About 2 months ago
Well that seems to have buggered up Experians new credit scoring which was changed to included tenant rent payments.
Contango
You're Missing Out!
Members can reply to discussions, connect with experienced landlords, and access full member profiles showing years of expertise. Don't stay on the sidelines - join the UK's most active landlord community today.
Not a member yet? Join In Seconds
Login with
Member Since January 2023 - Comments: 128
21:18 PM, 4th December 2025, About 2 months ago
Reply to the comment left by Robert at 04/12/2025 – 09:48
It depends on the wording of the guarantors covenant. What is best is a continuing guarantee whixh extends until such time as the tenancy comes to an end (or, I think, the tenant dies)
GlanACC
Read Full Bio
You're Missing Out!
Members can reply to discussions, connect with experienced landlords, and access full member profiles showing years of expertise. Don't stay on the sidelines - join the UK's most active landlord community today.
Not a member yet? Join In Seconds
Login with
Member Since March 2023 - Comments: 1486
21:24 PM, 4th December 2025, About 2 months ago
Reply to the comment left by Contango at 04/12/2025 – 21:18
Don’t think any form of words can get round the act. I think 6 months is the most for a guarantor and you can’t write any form of ‘words’ that will invalidate the tenants rights.
(just like a shop saying a new widget has only got 6 months guarantee when the law actually says it is up to 6 years in certain cases)