The number of landlords asking prospective tenants to provide guarantors ahead of renting a UK property has risen by 3% since this time last year, new research from Goodlord has indicated.

According to the data, sourced from Goodlord’s database of over 1,000 letting agencies, the number of landlords requesting guarantors has climbed to 15%.

This marks the highest rate recorded, a 50% increase in requests for guarantors since Goodlord’s tracking began in 2018.

Goodlord suggested the recent rise is reflective of the current cost of living crisis and higher inflation rates in the UK. As rents continue to rise out of line with wages, the firm suggested that more landlords are demanding the added security of a guarantor to ensure they still receive rent in the event that the tenant can’t pay.

“The cost of living crisis, coupled with steep rising rental prices, has exacerbated an already uncertain lettings market, leading to an increase in the number of landlords requesting tenants to name a guarantor,” said managing director of referencing at Goodlord, Blake Richmond.

“As rents continue to rise out of line with wages, more tenants are having to spend a larger portion of their salaries on rent. When you add to this the increasing lack of rental properties available at the moment, tenants are needing to stretch their budget further to secure properties, again causing landlords to seek out the extra level of security, provided by guarantors.”

Goodlord’s data also indicated that the increase was felt differently across the various regions of the UK. The South West was most affected with requests for guarantors rising from 15% to 28% in 2022. The average rent for the region has also risen by 10%, worth £101 per calendar month, when compared to this time last year.

In comparison, requests for guarantors in Greater London has gone down from 9% to 8%, despite rents in the city rising by 13%, an increase worth £218 per calendar month, when compared to the same time last year.

“While the number of tenants being asked to provide a guarantor has risen in most regions across the UK, notably in the South West, Greater London however has seen a decrease,” Richmond added.

“This could be reflective of how the London property market is becoming more expensive and competitive. Often tenants in London are offering to pay more up front as a means of securing a property, giving landlords another sense of security to their means outside of guarantors.

“Naming a guarantor can be a positive thing to enable a greater spectrum of tenants to access housing, but it can add complications to the rental process and is something that should only be requested when genuinely needed, lest we create unnecessary barriers to entry in an already competitive rental market.”

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