Almost half (46%) of student renters and one in four (26%) of working professionals didn’t know what a rent guarantor was before being asked to provide one (Understanding Renters in 2026).
With more than one in five private renters (22%) asked to provide a guarantor (2024/25 English Housing Survey), UK rental service provider Housing Hand has shared three things people need to know about rent guarantors but often don’t.
1. A guarantor can be liable for more than just unpaid rent
Depending on the wording of the guarantor agreement, a rent guarantor can be responsible for property damage, legal costs or other tenancy-related debts. As such, anyone who stands as a personal guarantor for someone else’s rent needs to read the legal agreement carefully before signing, to understand the full extent of their liability.
2. Financial affordability assessments for rent guarantors are more stringent than for tenants
Housing Hand reveals that affordability for renters and their guarantors is assessed differently. For renters, whether or not they can afford a property is usually judged at 2.5 to 3 times their income. However, for personal rent guarantors, that rises to 3.5 to 4 times their income, because they landlord has to factor in the guarantor’s ability to afford their own mortgage and other fixed outgoings, not just that of the rental liability they’re signing up to cover.
3. Not all rent guarantor services are equal
For renters using a professional rent guarantor service, rather than a personal guarantor, it’s important to understand differences between providers. Some charge additional fees if the renter wants to pay monthly (rather than upfront). Others lock renters into multi-year guarantees that they still have to pay even if their plans change and they no longer need the service.
“A rent guarantor is a legal arrangement, whether you’re using a personal guarantor or a professional service. As such, reading the small print before you sign is crucial. We’ve seen a 50% increase in applications for rent guarantors since the implementation of the Renters’ Rights Act, so it’s more important than ever that people understand what’s involved and what they’re signing up to.”
Graham Hayward, Managing Director, Housing Hand
For more information, please contact Housing Hand on +44 (0) 207 205 2625 or visit www.housinghand.com
