‘Landlords tightening the net’: One in three agents say guarantor demands are rising

The data suggests a clear shift among a substantial minority of landlords who are tightening criteria amid economic pressure and regulatory change.

The research is from the newly released Alto 2026 Agency Trends Report, which surveyed 250 estate and letting professionals across the UK.

The findings come as landlords face mounting pressure from rising mortgage costs, ongoing affordability concerns, and the forthcoming Renters’ Rights Bill - which is expected to remove Section 21 ‘no-fault’ evictions and strengthen tenant protections.

Industry leaders say this is beginning to reshape how landlords assess risk at the point of tenancy.

“Landlords are nervous, and that’s feeding through into stricter tenant requirements,” said Riccardo Iannucci-Dawson, CEO of Alto.

“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.”

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.

As a result, guarantors are increasingly being used as a financial backstop - particularly in cases where affordability is marginal or tenant profiles carry more uncertainty.

Recent industry data supports this shift. According to government figures, landlord possession claims remain elevated compared to pre-pandemic levels, while arrears pressures continue to affect tenants amid cost-of-living strain.

At the same time, average rents across the UK have risen sharply over the past two years, increasing affordability challenges in many regions.

“Guarantors are increasingly seen as a financial safety net,” added Iannucci-Dawson.

“But this also adds complexity for agents. More referencing, more paperwork, more compliance checks and more room for friction if processes aren’t streamlined.”

Alto says agencies will need tighter, faster pre-tenancy workflows to handle this shift efficiently, particularly as compliance demands intensify under the new rules.

“When risk rises, admin rises,” Iannucci-Dawson said. “The agencies that can manage guarantor checks, affordability assessments and documentation seamlessly will protect both landlords and tenants without slowing deals down.”

To help agents prepare, Alto is running a dedicated session on the Renters’ Rights Bill, focused on what the changes mean in practice and how agencies can adapt their processes ahead of enforcement.

The free session will cover key compliance requirements, operational impacts, and the steps agents should be taking now to stay ahead of the transition - as the industry moves toward a more regulated, risk-sensitive lettings market.

The Alto 2026 Agency Trends Report explores how landlords and agents are responding to regulatory change, affordability pressure and shifting risk tolerance across the UK lettings market.

The full report is available to download for free and offers a detailed look at the challenges and opportunities facing agents as the sector heads into a pivotal year.

Alto supports more than 33,000 UK estate and letting agents with its cloud-based CRM that streamlines operations, automates compliance, and powers growth across sales, lettings and property management.