Government tells landlords to review existing guarantor agreements
2 months ago | 4 comments
Rent-in-advance ban drives rise in guarantor requests
12:01 AM, 24th August 2026, 18 hours ago
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More than a third of tenants (37%) didn’t know what a guarantor was before being asked to provide one as the Renters’ Rights Act triggers guarantor requests.
According to Housing Hand’s Understanding Renters in 2026 report, 31% of renters only learned they needed a guarantor after finding a property they wanted.
The news comes as, under the Renters’ Rights Act, landlords and agents can no longer accept large amounts of rent in advance.
Landlords seeking an alternative form of security
Housing Hand Managing Director Graham Hayward explains the ban on rent in advance is driving demand for guarantors.
He said: “The past few months have been exceptionally busy. Landlords are keen to do all they can to protect their investments as the new rental sector landscape takes shape under the Renters’ Rights Act.
“Many require guarantors to reduce their risk should tenants become unable to pay their rent. The fact that tenants no longer have the option to pay several months’ rent upfront is driving demand, with landlords now seeking an alternative form of security. The importance of guarantors in enabling smooth rental transactions has never been greater.”
According to Housing Hand’s data, 46% of renters wouldn’t know what to do if they were unable to pay their rent and also reveals that one in three renters (33%) don’t plan their future finances.
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.
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Member Since May 2018 - Comments: 2453
12:25 PM, 24th August 2026, About 6 hours ago
Reply to the comment left by Peter Merrick at 24/08/2026 – 12:17
From memory the really extreme left wing parties and pressure groups (the Green Party, Generation Rent) did ask for a ban on guarantors to be put into the Labour Renters Rights Act.
There are always ‘unintended consequences’ from introducing rent restrictions. The ban on taking rent upfront doesn’t just affect students, it also affects pensioners who may have savings but may otherwise struggle to satisfy income requirements.
Banning guarantors would also have unintended consequences that Labour MPs either do not have the wit to understand or do not care about: Pat McFadden is reported to have said that all backbench labour MPs ask about is who can be taxed to pay for benefits:
https://x.com/i/trending/2061170031426203923
But because the Labour Renters Rights Act dramatically increases the risks for both landlords and guarantors, with the exception of employers, I cannot see why anybody would now want to personally be a guarantor now anyway (other than for a family member).
Member Since April 2024 - Comments: 7
12:45 PM, 24th August 2026, About 5 hours ago
S21 was as much of a lifeline for guarantors as it was for landlords. Several years ago I rented a property to a young single mum of 3 kids. Council said they would match the required rent only a few months later to renege. Father was contractual guarantor. Didnt mind making up the shortfall to help his kid. But she then brought in her new boyfriend. Police at the door and known to the father to be a wrongn. I refused consent but she carried on regardless. There was substantial risk of damage to my property and non payment of rent. Father knew that as well as I did. At the end of the 12 month fix term, I issued s21. This was in full discussion with guarantor who wanted me to end the arrangement.
I have one tenant in my now hmo whose parents are guarantor. They have an interest in ensuring their kids future as she does as apprenticeship. This I probably the only circ I would entertain a guarantee arrangement. Where the guarantor has a strong personal interest in the tenant and where it is unlikely in the extreme that they would ever fall out or any liklihood that the tenant could end up being twat (sorry!), simply because s21 for mine and the guarantors benefit no longer exists.
Member Since May 2018 - Comments: 2453
1:38 PM, 24th August 2026, About 4 hours ago
Reply to the comment left by Vanessa Shenton at 24/08/2026 – 12:45
ABSOLUTELY right: Removing s21 removed the fall-back not just that landlords were relying on but also that guarantors were relying on to decrease their risk. I would no more want to be a guarantor for a non-family member than I would want to be a Lloyds Name.