The Renters' Rights Act has reshaped how the private rental sector operates in England, introducing new rules designed to bring greater clarity and fairness for both tenants and landlords. One area seeing notable change is the use of rent guarantors, with demand for guarantor services rising as the market adapts to the new legislation. Here we look at what is driving that trend, who it affects, and what options are available.
A guarantor is someone who agrees to be legally responsible for a tenant's rent if the tenant is unable to pay. If a tenant falls into arrears, the landlord can pursue the guarantor for the outstanding amount.
Landlords typically request a guarantor when a tenant doesn't fully meet standard affordability or referencing criteria: for example, if they are a student, are self-employed, are relocating from abroad, or are moving to a higher-cost area where rents stretch beyond the standard income multiplier.
A personal guarantor is usually a UK homeowner with a stable income(often a parent, relative, or employer) who signs a legal deed accepting financial liability should the tenancy run into difficulty. For tenants who don't have someone suitable in that role, professional guarantor companies offer a commercial alternative.
One of the key changes introduced by the Act is a restriction on landlords and agents accepting large sums of rent in advance. Previously, tenants who wanted to strengthen their application could offer several months' rent upfront. Under the new rules, this approach is no longer available in most circumstances.
As a result, landlords seeking additional financial security are increasingly turning to guarantors as an alternative safeguard. This is a natural market adjustment rather than a cause for concern, and guarantors have long been a standard part of the rental process, and professional services now make them more accessible than ever.
Research by the deposit scheme Zero Deposit gives a useful picture of the current landscape. Average rents across England sit at around £1,438 per month, meaning tenants would typically need to earn at least £43,140 annually to pass standard affordability checks. Average earnings currently sit at around £41,859, leaving some renters just below the threshold.
Based on current income and rent levels, tenants in approximately one in five local authority areas across England may benefit from having a guarantor in place. If landlords choose to apply a slightly higher income multiplier(moving from 2.5 to three times the annual rent) that proportion could rise to just under half of all local authority areas. London and the South East are the areas most likely to be affected, given higher average rents relative to income.
Guarantors are commonly requested for a range of tenants, including:
In many cases, having a guarantor in place simply gives a landlord the confidence to say yes; it is a practical tool that helps both sides reach an agreement.
For tenants who don't have access to a personal guarantor, the growth of professional guarantor services means there is a straightforward solution readily available.
Housing Hand (www.housinghand.co.uk) is the UK's largest rent guarantor service, having supported over 100,000 students and working professionals since 2013. Trusted by more than 4,000 landlords and accommodation providers across the country, they offer a fast, reliable service that is accepted widely across the private rental sector.
Housing Hand accepts applications from employed and self-employed tenants, students, and professionals moving from overseas. With a reported 98% acceptance rate and a simple online process, most applicants receive a decision quickly. They are also the only provider to offer a pay-monthly option, with fees starting from around £36 per month, removing the need for a large upfront payment at an already expensive time.
Tenants also receive access to 24/7 virtual GP consultations and wellbeing support as part of the service, at no extra cost.
For landlords and letting agents, working with an established professional guarantor service provides the same security as a personal guarantor, backed by the reliability of an experienced organisation.
Guarantor agreements remain a lawful and widely used element of tenancy arrangements. Under the Renters' Rights Act's new open-ended tenancy structure, it is worth ensuring that any guarantor deed is clearly drafted and that all parties (landlord, tenant, and guarantor) fully understand the terms and duration of the commitment. Seeking legal advice when drawing up guarantor documentation is always a sensible step.
What is a rent guarantor?
A rent guarantor is a person or organisation that agrees to cover a tenant's rent if they are unable to pay. It is a common requirement for tenants who fall outside standard affordability criteria and is widely accepted across the private rental sector.
Is requiring a guarantor legal under the Renters' Rights Act?
Yes. Requiring a guarantor remains a perfectly lawful condition of a tenancy under the Renters' Rights Act.
How much does a professional guarantor service cost?
Costs vary by provider. Housing Hand offers a pay-monthly option from around £36 per month, making it one of the most accessible and flexible guarantor services available in the UK.
Who is Housing Hand suitable for?
Housing Hand works with students, employed and self-employed professionals, and international applicants. Their 98% acceptance rate means the vast majority of tenants who apply are approved.
This article is for informational purposes only and does not constitute legal or financial advice. Always seek professional guidance tailored to your individual circumstances.
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