A surge in tenants told to produce a rent guarantor is likely following the Renters Rights Act, it’s claimed.

A new analysis looks at average rent prices and income across local council districts to identify tenants must earn at least 2.5-times their annual rent – a common measure of affordability.

With average rents currently standing at £1,438 per month, equivalent to £17,256 per year, tenants would typically need to earn at least £43,140 annually in order to pass affordability checks. 

However, average earnings across England currently sit at £41,859, leaving the average renter £1,281 below the required threshold.

Across England’s 288 council districts, tenants are likely to require a guarantor in 19.8% of locations due to average earnings failing to meet affordability requirements.

London has 22 local authority districts where average incomes fall below the affordability threshold, while the South East contains a further 21 such areas.

If the affordability threshold was changed to 3.0-times average rent – as some analysts have suggested – the percentage of council districts in which the average tenant fails affordability vetting would increase from 19.8% to 47.6%.

A spokesperson for Zero Deposits, the firm behind the analysis, says: “With restrictions on upfront rent payments and fewer traditional safeguards available, landlords and agents naturally place greater emphasis on affordability checks and income protection when assessing prospective tenants.

“As a result, we expect guarantors to become an increasingly common requirement for renters who fall outside standard affordability criteria, particularly younger tenants, overseas applicants, self-employed workers, and those moving to high-cost rental areas.”