Landlords want guarantors with new tenants
Summary
New research from LRG suggests more landlords are asking for guarantors where prospective tenants do not meet standard affordability checks, as rent-in-advance safeguards are reduced under the Renters’ Rights Act. The article also highlights low tenant awareness of professional guarantor services and the potential impact on rental demand and tenant choice.
Why it matters
This is relevant to surveyors involved in lettings, valuation and rental market advice because affordability criteria and guarantor requirements can affect tenant demand, void risk and rental pricing assumptions. It also signals a shift in landlord risk management that may influence how rental properties are marketed and assessed.
Key points
- More than half of landlords are more likely to request a guarantor for tenants who fail affordability checks.
- Landlords can no longer request more than one month’s rent in advance under the Renters’ Rights Act.
- 51% of tenants without a guarantor would seek a cheaper property if asked for one.
- 74% of tenants said they were unaware of professional guarantor services.
- LRG says there is a significant awareness gap around alternative guarantor options.
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
