A growing number of landlords are insisting on guarantors before agreeing new tenancies, with a third of letting agents reporting an increase in such requirements over the past year.
Research from software provider Alto found that 33 percent of letting agents say more landlords in their portfolio now require guarantors compared to 12 months ago, with 11 percent reporting a significant rise in such demands.
Rising costs and regulatory change drive stricter criteria
The shift reflects mounting pressure on landlords from several directions: higher mortgage costs, affordability concerns among tenants, and the imminent arrival of the Renters Rights Act on 1 May 2026.
Riccardo Iannucci-Dawson, chief executive of Alto, said landlords were responding rationally to increased risk.
“Landlords are nervous, and that is feeding through into stricter tenant requirements. Higher borrowing costs, regulatory reform and longer eviction timelines all change the risk equation. When landlords feel they have less room for error, they look for additional safeguards.”
The removal of Section 21 under the RRA is expected to make regaining possession more complex and time-consuming. This increased perceived risk is driving greater use of guarantors as a financial backstop – particularly where tenant affordability is marginal.
Affordability pressures compound landlord concerns
This follows Residential Landlord’s coverage of the RentGuarantor and mydeposits partnership, which launched a combined deposit and guarantor product in response to growing demand for tenant security measures.
Government data shows landlord possession claims remain elevated compared to pre-pandemic levels. Average rents have risen sharply over the past two years, creating affordability challenges that increase the likelihood of missed payments – and the appeal of having a guarantor to fall back on.
Iannucci-Dawson added: “Guarantors are increasingly being used as a financial backstop – particularly in cases where affordability is marginal or tenant profiles carry more uncertainty.”
The trend may create additional barriers for tenants without family members able to act as guarantors. Landlords should be aware that blanket guarantor policies could attract scrutiny under the new anti-discrimination rules taking effect in May.
Opinion
The rise in guarantor demands reflects a rational response to increased landlord risk – but it creates a two-tier rental market. Those with family support get housed; those without face rejection. Rent guarantee products may offer a middle path that protects landlords without excluding vulnerable tenants. But until the court system improves and regulatory uncertainty eases, expect landlords to keep demanding every safeguard they can get.
