Rent guarantor applications have jumped by more than 50% in the 100 days since the Renters' Rights Act came into force, according to Housing Hand, one of the UK's largest rent guarantor providers.
The Act, which took effect on 1 May 2026, introduced a cap on upfront rent payments, preventing most landlords from requesting more than one month's rent in advance. Graham Hayward, managing director of Housing Hand, says the shift has fundamentally changed how landlords approach tenant risk.
"The growth in rent guarantor applications we have received in the last 100 days has been phenomenal, as the market manages its changed risks in the new Renters' Rights Act landscape," said Hayward.
"Most landlords (PBSA are largely RRA exempt) can't request or take more than one month's rent upfront anymore, so they're asking renters to provide guarantors instead."
Landlords are also using guarantor firms to manage their Know Your Customer obligations. Many want assurance that a trusted provider has already carried out sanctions, politically exposed persons, and source-of-income checks on prospective tenants, reducing their own compliance burden.
Claims volumes hold steady despite legislative upheaval
Despite the surge in demand, Housing Hand says its claims figures have not followed the same trajectory. The business has settled around £7M in payouts to accommodation providers over the past five years, at an average of approximately £1.5M per year. That average has remained unchanged, even as the Renters' Rights Act has reshaped the letting market.
"The overall volume of payouts remains pretty static, demonstrating the efficacy of the work we do with accommodation providers to minimise their risk," Hayward added.
"The rental landscape has changed significantly, and driven up demand for rent guarantors enormously, but landlords who have worked proactively with guarantor services have largely taken the changes in their stride. For those landlords who do need to make a claim, we're able to settle digitally within 21-27 days through our 24/7 online portal."
