A coalition of leading charities has called on the Labour Party to introduce new rental laws to prevent poorer tenants from being excluded from the housing market due to unfair guarantor rules. The charities argue that these rules allow landlords to discriminate against “undesirable” tenants and should be reformed as part of Labour’s forthcoming Renters’ Rights Bill.
Research conducted by Shelter reveals that one in three renters asked to provide a guarantor struggles to do so, leaving approximately 600,000 renters unable to secure a home in recent years. In an open letter to Housing Secretary Angela Rayner, 28 organizations, including Shelter and the Joseph Rowntree Foundation, warn that the issue will worsen unless addressed alongside other anti-discrimination measures in the bill.
The letter states that landlords may increasingly abuse their power to demand guarantors, even when there is minimal risk of tenants failing to pay rent. This practice disproportionately affects poorer tenants and those receiving benefits, who are less likely to know high-earning homeowners willing to act as guarantors.
The Renters’ Reform Coalition, which coordinated the letter, is urging the government to amend the Renters’ Rights Bill, currently under consideration in the House of Lords. The proposed changes would prevent landlords from requiring guarantors when tenants have sufficient income to cover rent or when landlords have insurance to cover potential non-payment. Additionally, the coalition seeks to limit guarantor liability to six months’ rent.
Angela Rayner, who is spearheading the bill, has previously stated that the government’s plans aim to unleash “the biggest building boom in a generation.” However, the charities argue that without addressing guarantor rules, the reforms risk perpetuating discrimination against vulnerable renters.
The signatories are not calling for the complete abolition of guarantors but rather for stricter regulations to ensure fairness and accessibility in the rental market. They emphasize that failing to act will deepen inequalities, locking out those who are already disadvantaged.
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