Do Landlords Need to Review Guarantor Agreements?

Guarantors matter more than they did six months ago. With rent in advance now capped at one month, landlords have lost the main tool they used to de-risk a thin application — and research suggests around half of all tenants may now need a guarantor of some kind when taking a new tenancy.

So the government quietly updating its guidance to say existing guarantor agreements “could be affected” is worth understanding properly.

What the guidance actually says

Updated guidance on the Tenant Fees Act confirms two things and raises one problem.

Landlords can ask a tenant to provide a suitable rent guarantor as a condition of granting the tenancy. That has not changed, and it is worth stating plainly because plenty of landlords assumed the Renters’ Rights Act had restricted it.

A tenant may choose to use a professional guarantor service. But if you require them to take out a particular product, without giving them a free choice of provider, that becomes a prohibited payment under the Tenant Fees Act.

This is a real change in practice. Agents have commonly specified a preferred provider. That approach now carries risk.

The guidance states that where a guarantor agreement was entered into before 1 May 2026, its terms could be affected by the tenancy reforms, and that landlords should review existing agreements and obtain the guarantor’s consent to any variations that may be required.

It does not say what those variations are. Industry publications have asked the department for clarification and, at the time of writing, had not received a substantive answer.

Why it might matter — and why it might not

Being straight with you: this is genuinely unsettled, and there are two credible positions.

The case for concern

A guarantee is a contract, and contracts of guarantee are interpreted strictly. The general principle is that a guarantor is discharged if the underlying obligation is materially varied without their consent.

The tenancies those guarantees relate to have changed:

• Fixed terms converted to open-ended periodic tenancies on 1 May 2026
• Rent periods longer than one month were automatically adjusted to monthly
• Existing rent review clauses became void — increases now run through a Section 13 notice

If a guarantee was written around a twelve-month fixed term with a contractual rent review, and the tenancy is now open-ended with a statutory increase mechanism, a guarantor could argue the thing they guaranteed no longer exists in that form.

The case that this is overstated

The counter-argument, made forcefully by some experienced landlords and lawyers, is that the Act did not vary existing agreements at all — it changed the statutory framework beneath them, automatically and by operation of law.

On that reading, no variation has been made by the landlord, so nothing needs the guarantor’s consent. A guarantor who signed up to guarantee the rent under a tenancy still guarantees the rent under that tenancy, whatever mechanism now governs increases.

Some have described the warning as scaremongering. That may prove right. But the guidance is the government’s own, and it costs little to act on it.

What to do about it

The sensible position is a low-cost precaution rather than panic.

1. List every tenancy with a guarantor where the guarantee predates 1 May 2026.
2. Read what the guarantee actually says. If it is worded broadly — covering the tenancy “and any continuation or statutory periodic tenancy arising” — you are in a far stronger position than a guarantee tied tightly to a fixed term.
3. Write to the guarantor explaining that the tenancy has become periodic by operation of law, and asking them to confirm in writing that the guarantee continues to apply.
4. Keep the reply. Written confirmation is the whole point of the exercise.
5. Do not attempt to increase the guarantor’s exposure in the same letter. Asking them to confirm continuity is reasonable. Asking them to accept a wider liability is a variation they can simply refuse.
6. Use an updated guarantee for new tenancies — one drafted for periodic tenancies rather than adapted from a fixed-term template.

If a guarantor refuses to confirm, take advice before relying on the guarantee. Better to know now than at the point you need to enforce it.

Professional guarantor services — the trap

Demand for these products has risen sharply, and the compliance line is narrow but clear.

• Lawful: requiring a suitable guarantor, and telling the tenant that professional services exist if they cannot provide one.
• Lawful: the tenant choosing a provider themselves and paying for it.
• Prohibited payment: requiring the tenant to use your nominated provider, or presenting one option as the only route.

If you mention providers at all, give more than one and make clear the tenant may use any suitable service. Put that in writing.

An alternative worth considering: rent guarantee insurance taken out by you, at your cost. That sits outside the prohibited payments regime entirely, because the tenant is not paying for it.

Frequently asked questions

Can I still insist on a guarantor?

Yes. Government guidance confirms a landlord can require a suitable rent guarantor as a condition of granting a tenancy. Apply the requirement consistently to every applicant, though — selective use risks a discrimination claim.

Are my existing guarantor agreements void?

Nobody has said that. The guidance says terms “could be affected” and advises a review. It is a precaution, not a declaration of invalidity.

What if the guarantor will not sign anything new?

You cannot compel them. Ask only for confirmation that the existing guarantee continues — that is far more likely to be agreed than a fresh document. If they refuse outright, take legal advice on where that leaves you.

Can I ask for rent in advance instead of a guarantor?

Only one month, and not before the tenancy is entered into. You also must not invite or encourage a tenant to offer more — accepting an unsolicited offer can still expose you to a penalty. See our guide on rent in advance rules.

Does a guarantor need a Right to Rent check?

No. Right to Rent applies to adult occupiers who will use the property as their only or main home. A guarantor who lives elsewhere is not an occupier. Reference them properly for creditworthiness, though — fabricated guarantors are part of the current rise in tenant fraud.

Should I get a guarantor for every tenancy now?

It is a reasonable response to losing rent in advance as a risk tool, but be consistent. A written policy applied identically to all applicants protects you; case-by-case discretion based on impression does not.

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