MPs are once again pushing the government to prevent landlords from making guarantor requests.
During a debate on Radio 4’s Today programme, Labour’s Alex Sobel highlighted the case of a care leaver without parents who had struggled to get a guarantor.
He told listeners: “People are signing a legal contract; they paid a deposit covering many months’ rent and paid a month’s rent in advance - why should they need a guarantor or failing that a guarantor service which costs between £100 and £300 a month? It’s completely unnecessary.”
His amendment to severely limit landlords’ right to use guarantor agreements – backed by multiple housing charity organisations - was rejected during a House of Lords debate on the Renters’ Rights Bill.
They argued that a guarantee should not be legally enforced when a tenant’s income is sufficient to cover the rent, and/or when a landlord has taken out rent guarantee insurance.
Sobel added that although the bill had almost finished, it was working with the government on this issue. “They are working particularly on the care leaver issue to try and resolve it.”
He said those who couldn’t get guarantors were already on the margin so this was “re-marginalising” them, while a good landlord would have landlord insurance which indemnified them against loss of rent, along with a holding deposit and rent in advance.
NRLA policy director Chris Norris told listeners that landlords weren’t looking for an “arbitrary figure” but typically for a tenant to be able to evidence that they had an income of 2 1/2 times the rent. Asking for a guarantor was a solution to the tenant’s problem as rent guarantee insurance was like any other financial agreement.
He added: “The consequences [of changing the rules] unfortunately will make it more difficult for people who are on the margins, people who find it difficult to access a home already”.
Sobel's campaign has been backed in recent months by several big tenant charities, including Shelter.
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