The Renters’ Rights Act was supposed to make renting fairer and less stressful for tenants across England.
It stopped no-fault evictions, cracked down on bidding wars, and made it harder for landlords to suddenly hike rent prices. For a lot of renters, especially people who’ve dealt with unstable housing for years, those changes were badly needed. But now another problem is starting to appear, and it could make it even harder for some people to actually get accepted for a home in the first place.
Landlords are becoming far more cautious about new tenants.
One of the biggest changes under the Renters’ Rights Act is that landlords can no longer remove tenants as easily as before. Section 21 no-fault evictions have ended, which means landlords now need an actual legal reason to ask somebody to leave. For tenants, that brings more security and stability, especially during a housing crisis where moving can be expensive and stressful.
But some landlords are responding by becoming much more selective about who they rent to in the first place. Property company Zero Deposit believes the number of renters needing a guarantor could jump from around one in five tenants to almost one in two. The concern is that landlords now see affordability checks as one of the few ways they can protect themselves financially before a tenant moves in.
More renters may soon need a guarantor.
A guarantor is somebody who agrees to legally cover your rent if you cannot pay it yourself. In most cases, this is usually a parent, close family member, or somebody with a strong financial background. Landlords often prefer guarantors who own property themselves because it gives them more confidence if payments are missed later on.
For some renters, finding a guarantor is fairly simple. But for many others, it becomes a huge obstacle. Not everybody has family members who own homes, earn high salaries, or are financially stable enough to pass referencing checks. Some renters may not even have anybody they feel comfortable asking in the first place.
Affordability checks could become much stricter.
Most landlords already ask tenants to prove they earn enough money to comfortably cover rent payments. A common rule is that tenants should earn around two-and-a-half times the yearly rent amount. But experts believe many landlords may soon increase that threshold to three times the rent instead.
That change could make a massive difference. Research suggests the average renter in England already falls more than £1,200 short of current affordability checks. With average monthly rents now sitting above £1,400 in many areas, renters often need salaries above £43,000 just to comfortably pass standard checks. For people on average wages, that becomes incredibly difficult.
Some groups of renters are likely to struggle more than others.
Students are often asked for guarantors because they may not have full-time salaries yet. First-time renters also struggle because they do not have previous landlord references or long rental histories. But the issue goes much deeper than that. People moving to the UK, workers on temporary contracts, self-employed people, and those receiving benefits can all face extra hurdles during affordability checks.
That creates a situation where the people already struggling most in the housing market may end up facing even more pressure. Somebody can afford rent every month perfectly well, but still fail rigid affordability formulas used by letting agents or landlords. In fast-moving rental markets, delays caused by guarantor checks can also mean losing properties before paperwork is completed.
Upfront rent payments are no longer an easy workaround.
In the past, some renters managed to secure homes by offering several months of rent upfront. This helped reassure landlords even if tenants had lower incomes, limited credit histories, or non-traditional work situations. But the Renters’ Rights Act now limits how much rent landlords can request in advance.
That is good news for many tenants because huge upfront payments were pricing people out of homes before they even moved in. But at the same time, landlords can no longer use upfront rent as a financial safety net. Experts believe that is another reason why affordability checks and guarantor requests are now becoming stricter instead.
The system still tends to favour wealthier families.
One of the biggest criticisms of the guarantor system is that it often rewards people with family wealth and property ownership, while making life harder for everybody else. If your parents own a home and have stable incomes, passing guarantor checks is usually far easier. But renters from lower-income backgrounds may not have that support available to them at all.
That creates a housing system where two people with similar jobs and similar incomes can end up treated very differently depending on their family situation. Critics argue that this deepens inequality in the rental market because financial support networks become almost as important as your own income when trying to secure somewhere to live.
Many renters are still trying to work out what the changes really mean.
Housing charities recommend checking affordability rules early before applying for properties, especially in expensive areas where landlords may apply stricter income requirements. Having paperwork ready ahead of time can also help speed things up, including payslips, references, bank statements, and proof of employment.
Some renters are also turning to professional guarantor services, although these usually come with extra fees. Others are looking at smaller landlords rather than large agencies, as independent landlords may sometimes be more flexible about income checks or employment history. The rental market is clearly changing quickly after the Renters’ Rights Act, and many tenants are still trying to understand what those changes will really mean long term.
