According to research from the Goodlord rental platform, the likelihood of tenants with incomes between £50,000 and £74,999 being asked to provide a guarantor has increased by 82.3% in 2023, indicating that landlords are becoming more selective when choosing tenants. Compared to 2020, 2.68% of tenants in this income group were asked to provide a guarantor, up from 1.47% in the previous year.

Especially for tenants with incomes between £75,000 and £100,000, 1.72% of them were required to provide a guarantor, representing a 187% increase from 2020. Oli Sherlock, Managing Director of Goodlord Insurance, pointed out that in the past, the requirement for guarantors was primarily focused on students and tenants who, on paper, appeared to be renting beyond their financial means.

However, the outbreak of the pandemic has expanded the scope of requiring guarantors, and many landlords and agents have widely applied this practice to a broader tenant base. As the research indicates, this practice has transcended traditional tenant groups, meaning that high-income earners are increasingly likely to be asked for details of a guarantor.

Landlords seeking additional safeguards are not illogical, given the prolonged four-year uncertainty and complex regulatory changes they face. However, this practice may be frustrating for tenants with easily verifiable financial capabilities. Sherlock emphasized that the judicious use of guarantor systems is an important feature of a healthy rental market, but agents should be cautious about using this practice excessively or unnecessarily.

Overall, in 2023, 18.4% of tenants were asked to provide a guarantor, slightly lower than 17.7% in 2020, representing an increase of about 4%. This indicates that landlords are placing more emphasis on security and risk mitigation when selecting tenants.

Additionally, according to reports, tenants under the age of 30 make up over 55% of the rental population. Even for high-income earners, their likelihood of being asked to provide a guarantor has increased by almost 8% compared to 2020. This may be due to landlords being more cautious, considering not only tenants' ability to pay but also other factors such as stability and reliability.