Rent guarantee demand jumps after Renters’ Rights Act

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Rent guarantee demand jumps after Renters’ Rights Act

Within weeks of the Renters’ Rights Act coming into force, RentGuarantor has revealed that demand for its services rocketed as landlords looked at how to protect their rent income.

The firm reported a 115% rise in demand in May, with revenue for the month reaching about £700,000.

Property experts have warned that the RRA could leave landlords with a lengthy struggle to gain possession from problem tenants and prompt an exodus from the private rented sector.

The company said the figures reflect a ‘structural shift’ in demand for rent and property damage guarantees after the RRA came into force on 1 May 2026.

The firm’s news follows research from Zero Deposit which suggests the share of local authority areas where tenants may fail affordability checks could rise from one in five to almost one in two.

That means more than half of tenants may need a guarantor after the RRA was introduced.

Professional guarantor service

The firm’s chief executive, Paul Foy, said: “The company’s performance in May 2026 marks a clear shift in demand for our professional guarantor service.

“The structural changes to the sector resulting from the Renters’ Rights Act are driving sustained growth across our core customer segments and reinforcing the relevance of our solution.”

RentGuarantor has also expanded its services to include the ability to settle property damages.

Mr Foy said this is a ‘critical step’ in positioning the firm’s offering that simplifies the core aspects of securing rental accommodation in the UK.

AI investment

RentGuarantor also said it is investing heavily in AI to enable it to fast-track its rent guarantee services without hiring more staff.

The planned investment includes AI-enabled document processing, targeted recruitment in data science and engineering, and upgrades to technology infrastructure.

Doing so could help the firm to grow its annual capacity from 20,000 to 100,000 contracts.

Mr Foy said: “We are moving quickly to scale capacity through our planned investment in AI, spearheaded by our in-house expertise, so that we can sustain this growth without compromising the high standards of service and risk management that underpin our business model.”

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