Renters Rights Act leads to “phenomenal” surge in rent guarantors
Summary
The article reports a sharp rise in rent guarantor applications following the first three months of the Renters Rights Act, with one supplier seeing a 50% increase. It says landlords are using guarantor services more often because upfront rent requests are restricted, and these firms are also helping with KYC-related checks such as sanctions, PEPs and income verification.
Why it matters
Residential property surveyors advising landlords, agents or investors should note the operational shift in tenant referencing and rent security arrangements under the new regime. The article also highlights compliance implications around due diligence and payment risk management in the rental sector.
Key points
- Rent guarantor applications rose 50% at one supplier in the first three months of the Act.
- Landlords are increasingly using guarantors because they can no longer request more than one month’s rent upfront.
- Guarantor firms are helping with KYC checks, including sanctions, PEPs and income verification.
- Housing Hand says claims for missed rent have not increased materially despite higher demand.
- The firm reports around £7m in payouts over five years, with annual payouts remaining broadly stable.
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