Tenants without access to a personal guarantor are facing fewer rental options, despite alternative solutions that could help them secure a home, according to new research from LRG.
The Summer 2026 Lettings Report, based on responses from 717 landlords and 860 tenants across England and Wales, highlights a significant gap in awareness of professional guarantor services as rental guarantor requirements become a more important part of the application process.
When asked what they would do if they needed a guarantor but did not have a family member or friend who could help, 51% of tenants said they would look for a cheaper property, while 16% said they would stop their property search altogether.
Only 18% said they would use a professional guarantor service, with 15% selecting another option.
The findings suggest some tenants may be ruling themselves out of suitable properties, or leaving the rental market altogether, because they are unaware that alternatives to a family guarantor are available.
Awareness of professional guarantor services remains low. Nearly three quarters of tenants, 74%, said they had never heard of them. A further 12% had heard of the services but did not know the details, while another 12% were aware of them but had never used one.
Just 2% said they had used a professional guarantor.
For renters who do not have family or friends in a position to guarantee their tenancy, that lack of awareness can affect whether they continue their search or walk away. Among the 37% of tenants who said they had needed a guarantor at some stage, 7% were unable to find one.
The findings are consistent with wider evidence that many renters encounter guarantor requirements without understanding what they mean or what alternatives may be available.
Research highlighted by Housing Hand found that 34% of renters did not know what a guarantor was when they were first asked to provide one.
Rental guarantor demand rises as landlords lose rent-in-advance option
The issue has become more relevant following changes introduced under the Renters’ Rights Act, which prevent landlords from requesting more than one month’s rent in advance.
With advance rent no longer available as an additional safeguard, landlords are looking more closely at referencing, affordability and other forms of reassurance when assessing applications.
More than half of landlords, 54%, said they were now more likely to request a guarantor from applicants who did not comfortably meet standard affordability checks.
A further 28% said their approach had not changed, while 13% said they had always required a guarantor in those circumstances. Only 5% said they were less likely to request one because they used other options, such as rent guarantee insurance.
The English Housing Survey 2024-25 found that one in five private renters was already being asked to provide a guarantor before moving into a property.
LRG's findings suggest that clear guidance about guarantors and the alternatives available will become increasingly important for both landlords and tenants.
Rent guarantee insurance provides another option
Rent guarantee insurance is also playing a growing role among landlords. Nearly 37% said they already had a policy in place, while a further 19% were actively considering it.
However, 17% said they were not aware that this type of protection existed, indicating that awareness of alternatives remains limited among landlords as well as tenants.
Professional guarantor services and rent guarantee insurance therefore form part of a wider range of options available when a prospective tenant cannot meet a landlord's usual requirements through family support or standard affordability checks.
The findings also point to a difference between how landlords and tenants approach the rental guarantor process. While landlords are increasingly seeking additional reassurance from applicants who fall outside standard affordability criteria, most tenants remain unfamiliar with professional services that could provide an alternative to a family member or friend acting as guarantor.
“Landlords need confidence that a tenancy is affordable and sustainable, particularly now that rent in advance is no longer available as an additional safeguard,” said Allison Thompson, chief lettings officer at Leaders, part of LRG.
“At the same time, tenants who do not have family or friends able to act as a guarantor should not assume they have run out of options. Our research shows there is a real opportunity to make people more aware of professional guarantor services and rent guarantee insurance. By explaining those choices early, we can help landlords make informed decisions while giving more tenants a fair opportunity to find the right home.”
