Renters Rights Act leads to “phenomenal” surge in rent guarantors
Summary
The article reports a sharp increase in rent guarantor applications following the first three months of the Renters Rights Act, with one supplier citing a 50% rise. It says landlords are using guarantors more often because they can no longer request more than one month’s rent upfront, while guarantor firms are also helping with KYC-related checks such as sanctions, PEPs and income verification.
Why it matters
This is relevant to residential property surveyors because it reflects a material shift in the private rented sector’s risk management and tenancy setup under the new legislative framework. Surveyors involved in valuation, landlord advice or rental market analysis should note the operational impact on letting practices and tenant affordability.
Key points
- One guarantor supplier reported a 50% increase in applications in the first three months of the Act.
- Landlords are using guarantors more because upfront rent requests are now restricted.
- Guarantor firms are being used to support KYC checks, including sanctions, PEP and income checks.
- The firm says missed-rent payouts have not increased materially despite higher demand.
- The article suggests landlords who adapted early have managed the change more smoothly.
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
