Rent Guarantor Applications Up 50% Since Renters' Rights Act Took Effect

Rent Guarantor Applications Up 50% Since Renters' Rights Act Took Effect

Rent guarantor applications have risen 50% in the first three months since the Renters' Rights Act came into force, according to Housing Hand, one of the UK's guarantor service providers.

With landlords no longer able to request or take more than one month's rent upfront, many are turning to guarantor arrangements as an alternative way to secure rent income. Landlords are also increasingly relying on guarantor firms to handle Know Your Customer checks - including sanctions and Politically Exposed Persons screening - alongside standard income verification.

Housing Hand managing director Graham Hayward described application growth over the period as "phenomenal" as the market adjusts to the Act's changed risk landscape. However, he noted the surge in applications hasn't translated into a rise in missed-rent claims: the company's payouts to accommodation providers have averaged around £1.5m per year over the past five years, and that average has remained unchanged since the Act came into force in May.

What this means for landlords
If you've been taking upfront rent as a risk-management tool, this is a reminder that guarantor arrangements are becoming the mainstream substitute - and, per this data point at least, aren't yet correlating with higher default rates. Worth treating as an early signal rather than settled trend, since it reflects one provider's book rather than sector-wide figures.

Source: Letting Agent Today, 18 September 2026