The number of tenancies that require a guarantor to go ahead has jumped nearly 18% in a year, latest figures reveal.

The number is up 30% compared to 2023, according to rental services provider Housing Hand. And renters completing its guarantor application process climbed 17.8% compared to Q3 in 2024.

The reassurance of a guarantor has become a critical part of the rental transaction.”

Housing Hand says: “We’re seeing several factors driving both renters and landlords to seek the peace of mind that comes with using an insurance-backed rental guarantor service.

“The ripples created by the passage of the proposed Renters’ Rights Bill through Parliament, on top of the general financial climate in the UK, mean that the reassurance of a guarantor has become a critical part of the rental transaction.”

Pressing

Meanwhile, proptech business platform Reapit is warning letting agents to keep on top of rent arrears ahead of the Bill becoming law.

With the legislation set to extend the threshold in England for tenant arrears to three months before an eviction notice can be issued, the need to act is pressing, Reapit says.

Agents who don’t act immediately on arrears could find themselves stuck.”

Dr Neil Cobbold, Commercial Director at Reapit, says: “With the Renters’ Rights Bill set to extend eviction timelines, agents who don’t act immediately on arrears could find themselves stuck, struggling to collect late rent, incapable of evicting, and unable to give landlords the assurance that they’ll be able to take legal possession of their properties within a reasonable time of tenants defaulting.

“That’s why automation and early intervention are essential strategies with managing arrears for any agency that wants to protect their income and grow their landlord portfolio.”

More on the Renters’ Rights Bill