Editor's note: This brief was summarised by The Property AI Team from a report by Property118. Read the original article for full details.
Raising Rent May Release Guarantors Under New Tenancy Rules
Since the Renters’ Rights Act came into force on 1 May 2026, all tenancies in the UK have become periodic, with fixed terms no longer in place. This change has led to concerns among letting agents and landlords about the ongoing liability of guarantors.
A key issue highlighted is whether guarantors remain responsible for the tenancy indefinitely, now that fixed terms have been abolished. The report notes that there is a particular worry that raising the rent could potentially release the guarantor from their obligations.
This development is relevant for letting agents and inventory clerks managing tenancies, as changes to rent or tenancy terms may impact the validity of existing guarantor agreements. The article suggests that the relationship between rent increases and guarantor liability is an area of active concern and discussion in the sector.
Letting professionals are advised to review guarantor agreements carefully in light of the new legal framework and consider the implications of any changes to tenancy terms.
Source: Property118