A coalition of activists has written to Housing Secretary and Deputy Prime Minister Angela Rayner claiming that current guarantor rules are unfair.
They claim that current rules allow landlords to discriminate against some tenants, and one of the groups – Shelter – claims to have found that one in three renters who are asked for a guarantor struggles to provide one, theoretically excluding them from consideration for some properties.
The 28 groups – including direct action organisation Acorn and Generation Rent as well as Shelter – want the government to amend the Renters Rights Bill to rule out demands for a guarantor where a tenant’s income is sufficient to cover rent or where landlords already have insurance against non-payment. It also urges the Government to cap guarantor liability at six months’ rent.
The letter goes on to claim that landlords “will simply switch to further abusing their power to request a guarantor, even when there is very little danger that a tenant will not pay rent.”
In the Independent online newspaper, Generation Rent deputy chief executive Dan Wilson Craw is quoted as saying: “Many tenants face discrimination from landlords when searching for a place to live. Even if you can afford the rent, if you’re self-employed or relying on benefits, landlords can demand multiple months’ rent upfront, or that you get a homeowner to guarantee your rent. While the government’s move to limit rent in advance is a positive step towards ending discrimination while renting, it will continue through excessive guarantor demands. The government must act to close this loophole. If you can afford the rent, there should be no need for a guarantor.”
A Labour backbencher attempted to introduce a similar amendment to the Bill in the Commons but while junior housing minister Matthew Pennycock said there was a “strong case” he added: “I appreciate fully that obtaining a guarantor can be difficult for some prospective tenants, and I understand the reasoning behind his amendment.
“However, I am also mindful that in some instances the use of guarantors can provide good landlords with the assurance necessary to let their properties to tenants who may otherwise find it difficult to access private rented accommodation.”
A Ministry for Housing, Communities and Local Government spokesperson told the Independent: “We have no plans to restrict the use of guarantors, but we are clear landlords should not discriminate against any prospective tenants and consider them on a case-by-case basis.
“Our Renters’ Rights Bill will create a fairer housing market by stopping landlords from demanding large amounts of rent in advance, while the reforms will further strengthen tenant rights and protections by abolishing section no fault 21 evictions, empowering tenants to challenge excessive rent hikes, and ending unfair bidding wars.”
