One in three agents (32%) report that more landlords are now routinely requesting guarantors than 12 months ago, with 11% reporting a significant rise.

A poll by CRM provider Alto reveals a marked shift in behaviour that reflects growing caution among many landlords who now increasingly insist on guarantors before agreeing tenancies amid economic pressure and regulatory change.

Agents report that mounting pressure from rising mortgage costs, ongoing affordability concerns, and the forthcoming Renters’ Rights Act are beginning to reshape how landlords assess risk at the point of tenancy.

“Landlords are nervous, and that’s feeding through into stricter tenant requirements,” says CEO Riccardo Iannucci-Dawson. “Higher borrowing costs, regulatory reform and longer eviction timelines all change the risk equation. When landlords feel they have less room for error, they look for additional safeguards.”

Removal

The removal of Section 21 is expected to make regaining possession more complex and time-consuming, increasing the perceived risk of arrears or problematic tenancies. “Guarantors are increasingly seen as a financial safety net,” adds Iannucci-Dawson.

Agents are left to manage expectations, mediate tricky conversations and sometimes deal with delayed move-ins – all of which eat into time and resources.

The research also found that 21% of agents have faced issues with tenants subletting properties via platforms such as Airbnb, often without landlord consent. It’s a growing problem, says Alto, especially in cities and popular tourist areas, where short-term income can be tempting for tenants under pressure.

However, unauthorised subletting can breach tenancy agreements, invalidate insurance policies and fall foul of local licensing rules, creating a legal and reputational minefield for agents.

Looking ahead, the firm predicts more regulation, more landlords selling, more demand pressure in the rental market and more use of AI, as adoption accelerates across the PRS.

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