The Renters' Rights Act has reshaped how the private rented sector operates in England, introducing reforms designed to create a fairer and more transparent rental market for both tenants and landlords. One area seeing increased attention is the use of rent guarantors, with demand for guarantor services expected to grow as landlords adapt to the new legislation.
This guide explains what rent guarantors are, why they are becoming more important, and what options are available for tenants who need one.
A rent guarantor is a person or organisation that agrees to be legally responsible for a tenant's rent if the tenant is unable to pay. If rent falls into arrears, the landlord can pursue the guarantor for the outstanding amount, in accordance with the terms of the guarantor agreement.
Landlords typically request a guarantor when a tenant does not fully meet affordability or referencing requirements. This might include students, self-employed applicants, international tenants without a UK credit history, or renters moving to areas where higher rents make affordability checks more difficult to pass.
A personal guarantor is usually a UK resident with a strong financial position—often a parent, close relative, or friend—who signs a legal agreement accepting financial responsibility if required. However, not everyone has someone able or willing to take on that role. In these cases, a professional guarantor service can provide an alternative.
One of the significant changes introduced by the Renters' Rights Act is the restriction on landlords and letting agents requesting large amounts of rent in advance. Previously, some tenants strengthened their rental application by offering several months' rent upfront, particularly if they had irregular income or could not meet standard affordability criteria.
With this option no longer available in most circumstances, landlords are increasingly looking to guarantors as an alternative form of financial reassurance. This represents a natural adjustment within the rental market rather than a fundamental change to the role of guarantors, which have long been a well-established part of the tenancy process.
Research from Zero Deposit highlights why guarantors are likely to become increasingly important.
Average rents across England are approximately £1,438 per month, meaning many landlords expect tenants to earn at least £43,140 per year to satisfy standard affordability checks. Average earnings, however, remain slightly below this level at around £41,859, leaving many otherwise reliable tenants just outside typical referencing criteria.
Based on current rental and income levels, tenants in around one in five local authority areas across England could benefit from having a guarantor. If landlords apply more cautious affordability calculations, that figure could rise to almost half of all local authority areas, with London and the South East most affected due to higher rental costs.
Guarantors are commonly requested for:
In many situations, having a guarantor simply provides the additional reassurance a landlord needs to approve an application, helping tenants secure accommodation that might otherwise be unavailable.
For tenants who do not have access to a suitable personal guarantor, professional guarantor providers offer a practical alternative.
RentGuarantor provides professional rent guarantor services designed to help tenants meet landlord and letting agent requirements. Their service supports a wide range of applicants, including students, employed professionals, self-employed tenants, and individuals who do not have someone suitable to act as a personal guarantor.
Professional guarantor services can simplify the rental process by providing landlords with additional financial reassurance while helping tenants overcome referencing barriers that might otherwise prevent them from securing a property.
Guarantor agreements remain a lawful and widely used part of tenancy arrangements under the Renters' Rights Act.
With the introduction of the Act's open-ended tenancy structure, landlords and letting agents should ensure any guarantor agreement is clearly drafted, legally enforceable, and fully understood by all parties before it is signed. Taking professional legal advice when preparing guarantor documentation is recommended, particularly where long-term liabilities may arise.
Frequently Asked Questions
A rent guarantor is a person or organisation that agrees to cover a tenant's rental payments if they are unable to pay. Guarantors are commonly requested where a tenant does not meet standard affordability or referencing requirements.
Yes. Landlords can still require a guarantor as part of the tenancy application process where appropriate. Guarantor agreements remain a lawful and widely accepted form of financial security.
Yes. If you do not have a suitable personal guarantor, professional guarantor providers such as RentGuarantor can offer an alternative, subject to their eligibility criteria and application process.
Students, self-employed applicants, international tenants, first-time renters, and anyone whose income falls slightly below a landlord's affordability requirements are among the most common applicants asked to provide a guarantor.
This article is provided for general information only and does not constitute legal or financial advice. Legislation and tenancy requirements may change, and professional advice should always be sought where appropriate.
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