RentGuarantor Holdings (Aim: RGG), a niche provider of rental guarantee services, has emerged as a potential beneficiary of the Renters' Rights Act, which came into force at the beginning of May. The legislation, one of the most significant overhauls of the UK rental market in decades, has abolished fixed-term tenancies and banned ‘no fault’ evictions. Landlords can now only raise rents once a year and cannot serve notice to move into or sell a property during the first 12 months of a tenancy. While designed to protect tenants, the Act has made it considerably harder for landlords to evict non-paying tenants, prompting a defensive shift in the market.
According to Propertymark, the average time from claim to repossession has risen to over 68 weeks, up from just over 20 weeks in 2019. At the point of eviction, average unpaid rent stands at £12,708 across England and Wales, and £19,223 in London. In response, an estimated 40% of landlords now require tenants to provide a guarantor before agreeing to a tenancy. This is where RentGuarantor steps in, offering a paid-for guarantee service that replaces the need for a traditional guarantor such as a parent or grandparent.
Founded in 2016 by property investor Paul Foy, RentGuarantor charges tenants a £20 fee for an initial background check, using Open Banking and AI to assess affordability. If approved, tenants pay a further fee of around three to five weeks' rent, and the firm provides a legally binding guarantee to the landlord or letting agent. RentGuarantor then passes the risk to a panel of insurers, collecting the origination fee while remaining the primary point of contact. The company listed on the Aquis exchange in 2021 with minimal revenue, moving to the Aim junior market in the second half of 2025, where it raised £4m to support growth.
In the 2025 financial year, RentGuarantor reported revenue of £2.4m, an 87% increase year-on-year, with marketing spend kept tight at just £500,000. The firm ended the year with 3,123 contracts, equating to roughly £165 per contract in marketing costs. Crucially, in May—the month the Renters' Rights Act came into force—the company recorded a 115% increase in unaudited revenue compared with the average for the first four months of the year. Revenue per contract also rose 24%, and the group posted its first positive monthly EBITDA since admission, ahead of board expectations.
The key risk for RentGuarantor lies in its reliance on a single piece of legislation and the potential for market saturation. However, the shift in landlord behaviour appears structural, with court backlogs unlikely to ease quickly. For UK households, this means tenants without access to a traditional guarantor may face higher upfront costs, while landlords gain an extra layer of protection. Savers and investors should note that RentGuarantor is a small, early-stage Aim-listed company, and its shares carry significant risk. Readers are advised to consult a qualified financial adviser before making any investment decisions. Source: RentGuarantor Holdings, Propertymark