Landlords are becoming more cautious when choosing tenants, with growing numbers asking for guarantors where applicants fail to comfortably pass affordability checks.
New research from property group LRG suggests that more than half of landlords are now more likely to request a guarantor when they have concerns about whether a prospective tenant can afford the rent.
The shift comes following major changes introduced under the Renters’ Rights Act, which have reduced landlords’ ability to request large amounts of rent upfront.
Rent in advance rules have changed
Since 1 May 2026, landlords in England have generally been prevented from asking tenants to pay several months of rent in advance.
For a typical monthly tenancy, landlords can usually request no more than one month’s rent between the tenancy agreement being signed and the tenancy beginning. Previously, some landlords would accept six or even 12 months upfront, particularly where a tenant had limited income, was self-employed or struggled to meet conventional referencing requirements.
With that option largely removed, guarantors could increasingly become an alternative way for landlords to reduce the financial risk of taking on a tenant who does not meet affordability criteria.
More landlords looking for additional protection
LRG’s research found that 28% of landlords said their approach to guarantors had not changed, while another 13% said they already routinely required one where affordability was an issue.
Allison Thompson, Chief Lettings Officer at LRG, said landlords need to be confident that tenants can sustainably afford their rent, particularly now that taking substantial rent payments upfront is no longer available as an additional safeguard.
Government figures show that guarantors were already relatively common before the latest rental reforms. The English Housing Survey found that 22% of private renters had been asked to provide a guarantor before moving into their property during 2024/25.
Tenants without guarantors could struggle
The change could create another hurdle for tenants who do not have parents, relatives or friends willing or financially able to guarantee their rent.
When tenants without access to a guarantor were asked what they would do if one was required, 51% said they would search for a cheaper property.
Another 16% said they would abandon their property search altogether, while only 18% said they would consider using a professional guarantor company. Around 74% were unaware that professional guarantor services were even available.
Could rental reforms make referencing tougher?
One possible unintended consequence of the Renters’ Rights Act is that landlords may become more selective about who they accept.
Restrictions on rent in advance, combined with changes to possession rules and the abolition of Section 21, mean landlords are likely to place even greater importance on referencing, affordability checks, rental histories and guarantors before granting a tenancy.
For tenants with strong incomes and credit histories, relatively little may change. However, applicants with irregular earnings, weaker credit records or income that falls below affordability thresholds could find that providing a suitable guarantor becomes increasingly important.
For landlords, thorough tenant referencing is therefore likely to become an even bigger part of managing risk in the new rental environment.
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