Research suggests a growing number of landlords are now insisting on guarantors before agreeing tenancies.

Software service Alto says a third of lettings agents say more landlords in their portfolio are requiring guarantors than 12 months ago — with 11% reporting a significant rise.

The data suggests a clear shift among a substantial minority of landlords who are tightening criteria amid economic pressure and regulatory change.

The findings come as landlords face mounting pressure from rising mortgage costs, ongoing affordability concerns, and the forthcoming Renters Rights Bill.

“Landlords are nervous, and that’s feeding through into stricter tenant requirements,” says Riccardo Iannucci-Dawson, chief executive of Alto.

“Higher borrowing costs, regulatory reform and longer eviction timelines all change the risk equation. When landlords feel they have less room for error, they look for additional safeguards.”

The removal of Section 21 is expected to make regaining possession more complex and time-consuming, increasing the perceived risk of arrears or problematic tenancies.

As a result, guarantors are increasingly being used as a financial backstop – particularly in cases where affordability is marginal or tenant profiles carry more uncertainty.

Recent industry data supports this shift. 

According to government figures, landlord possession claims remain elevated compared to pre-pandemic levels, while arrears pressures continue to affect tenants amid cost-of-living strain.

At the same time, average rents across the UK have risen sharply over the past two years, increasing affordability challenges in many regions.

“Guarantors are increasingly seen as a financial safety net,” adds Iannucci-Dawson.