UK renters pay £1,001 for companies to vouch for them
Key Points
- UK renters pay an average of £1,001 for a professional guarantor, up 37% in a year
- RentGuarantor signed 3,703 contracts in the first half of 2026, a 179% increase
- Applicants pay a £20 fee before they know whether the firm will accept them
- The company credits the Renters' Rights Act for a surge in demand from tenants
Renters who cannot find a friend or family member to guarantee their rent now pay an average of £1,001 to a company to vouch for them instead.
New figures from RentGuarantor, an AIM-listed firm that acts as a professional guarantor for tenants in the private rental sector, show the average value of its contracts climbed 37% in a year, from £731 to £1,001.
The company revealed the figures in a trading update covering the six months to 30 June 2026. The results show that the group signed 3,703 contracts with renters over the period, a 179% increase on the 1,326 it completed in the first half of 2025.
Demand is growing even faster at the application stage, the group said. Tenants submitted 8,936 applications in the first six months of the year, more than double the 4,255 received a year earlier, and each applicant pays a £20 fee. Daily applications reached 2,754 in June 2026, up 341% on the 809 recorded in June 2025.
Landlords and letting agents typically demand a guarantor when a tenant fails referencing checks, earns below an income threshold, has no UK credit history, or receives benefits.
Tenants without a qualifying friend or relative must either pay months of rent upfront or buy the backing of a commercial guarantor such as RentGuarantor, which covers the landlord if the tenant misses payments.
New Renters’ Rights Act driving demand
RentGuarantor attributes the surge directly to the Renters’ Rights Act, which it says has created structural demand across the sector as letting agents, landlords and tenants adopt its service at an accelerating pace.
The legislation has tightened the rules landlords must follow when letting property. The company expects the Act to strengthen its trading further in the second half of the year, which it describes as historically its strongest period.
The growth in tenants paying for guarantors has effectively transformed the company’s finances.
Revenue reached £3.39 million in the first half of 2026, up 250% from £0.97 million a year earlier, and the firm moved from a £367,000 adjusted net loss to a £250,000 adjusted net profit. Revenue for June 2026 alone came in 618% higher than the same month last year.
Paul Foy, Chief Executive Officer of RentGuarantor, said the first six months of 2026 showcased the company’s positive trajectory, and pointed to a growing network of partnerships with letting agencies, councils and industry bodies as a driver of the numbers.
The company expects revenue for the full 2026 financial year to come in materially above market forecasts of £5.9 million to £6.0 million, and adjusted profit before tax to land materially ahead of the £0.2 million to £0.7 million forecast range.
