Government tells landlords to review existing guarantor agreements

The government is urging landlords to review guarantor agreements that were put in place before the Renters’ Rights Act came into force.

In updated guidance on the fees landlords can charge as part of a tenancy, the government is advising landlords to check existing guarantor agreements following the changes introduced by the Renters’ Rights Act.

The update comes amid a surge in demand for guarantors since the Act was introduced.

Landlords should review existing guarantor agreements

The guidance says: “Landlords can ask a tenant to provide a suitable rent guarantor as a condition of granting the tenancy. In these circumstances, a tenant could choose to contract a professional guarantor service.

“If landlords have a guarantor agreement in place that was entered into before 1 May 2026, then the terms of that agreement could be affected by the tenancy reforms included in the Renters’ Rights Act.

“Landlords should therefore review any existing guarantor agreements and obtain the consent of the guarantor to any variations to the agreement that may be required.

“Landlords and letting agents should seek independent legal advice if they are unclear whether a guarantor agreement is affected.”

Not every tenant has access to a suitable guarantor

Under the Act, landlords and letting agents can no longer accept large amounts of rent in advance.

As previously reported by Property118, this means some tenants may struggle to find a suitable guarantor.

Sam Reynolds, chief executive of Zero Deposit, said: “The challenge is that the traditional guarantor model is no longer practical for many renters.

“Not every tenant has access to a suitable guarantor, and even when one is available, the referencing and verification process can introduce delays at a time when rental properties move extremely quickly.”

According to the English Housing Survey, 21.5% of private renters pay more than one month’s rent in advance.

Zero Deposit claims that, with this option no longer available to landlords, many are expected to seek alternative forms of financial protection.

The deposit company suggests landlords could respond by increasing the affordability threshold from 2.5 times income to three times income.