Renters’ Rights Act may increase guarantor requirements
Investor Analysis
Zero Deposit research finds that the Renters' Rights Act's restrictions on upfront rent and traditional safeguards may push landlords to raise affordability thresholds from 2.5x to 3x annual rent, potentially requiring guarantors in nearly half of England's local authority areas — up from the current 19.8%.
Investor Relevance
Landlords and letting agents will likely need to update tenant screening processes, increasing reliance on guarantors and potentially widening the pool of 'higher-risk' applicants including younger renters and self-employed workers — raising void risk, administration burden, and tenant selection complexity across a significant proportion of the English rental market.
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