Rent-in-advance ban drives rise in guarantor requests

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).

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.

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.

Reply to the comment left by Ross Tulloch at 24/08/2026 – 11:35
Rejecting them outright goes further than the Act does. What’s prohibited is rent payable before the tenancy is entered into (Tenant Fees Act schedule 1, new paragraph 1(1A)) and any term requiring rent in advance (new section 4B of the 1988 Act). Nothing in either stops a tenant paying early of their own accord once the tenancy is running. You just can’t ask for it or make it a condition of granting it.

The workaround people are reaching for is already shut, mind. Charging more for the early periods than the later ones is a prohibited payment under the new paragraph 1A.

Reply to the comment left by [email protected] at 25/08/2026 – 09:10
This is helpful, so are you saying that after the Tenant starts and is in the property the tenant, or in this case his father because he is a student is able to pay the rest of the year in one lump? I thought my understanding of it is that you absolutely cannot accept it.

Reply to the comment left by Ross Tulloch at 25/08/2026 – 10:00
You can’t accept rent in advance even if offered before the tenancy starts. The rules are here:

https://www.gov.uk/government/publications/asking-for-rent-in-advance-guidance-for-local-authorities/asking-for-rent-in-advance-guidance-for-local-authorities

So that affects pensioners who struggle with the affordability checks on the basis of income, but who do have savings; it also affects overseas students.

What happens if somebody of their own volition after the tenancy has started pays, say the rest of the year upfront, but was not part of the deal.

Reply to the comment left by Ross Tulloch at 25/08/2026 – 16:54
As far as I understand the situation (please anybody else correct me if I’m wrong) once the tenancy has started the tenant is free to pay rent in advance. I doubt that this would be a year but if for example the tenant was going to travel, i.e. be away on one or two of the scheduled payment days and didn’t want to set up a DD or SO then payment in advance is an option.

Reply to the comment left by [email protected] at 25/08/2026 – 09:10
I think that charging more rent for the early periods than the later ones was always banned under the TFA. Something about stopping landlords getting an extra deposit by the back door I seem to remember.