RentGuarantor (RGG) has reported strong trading momentum for the first five months of 2026, with revenue rising 155% year-on-year to about £2 million as demand for its rent guarantee services accelerated following changes in the UK rental market. The company also announced plans to increase investment in artificial intelligence (AI) and has launched a new service combining rent guarantees with property damage protection.
Between January and May 2026, the number of applications received increased 82% to 6,288, while contracts executed rose 127% to 2,318. Average contract values also improved by 12% to £855 as the company moved further up the rental value scale. Management said growth was supported by stronger demand from existing partners alongside new partnership wins.
May marked a particularly strong month following the introduction of the Renters' Rights Act 2025 on 1 May. RentGuarantor generated record monthly revenue of about £700,000, more than double the average monthly revenue achieved during the first four months of the year. The company said the performance reflected increased adoption of its products across the private rental sector and expects similar momentum to continue through the second half of 2026.
The strong revenue growth also helped the group achieve its first positive monthly EBITDA since joining AIM, ahead of board expectations. As a result, management believes full-year revenue could be materially above market expectations while operating performance remains within the current market range.
In addition, the company is accelerating investment in AI and automation to support future growth without a proportional increase in headcount. Planned initiatives include AI-enabled document processing, targeted recruitment in data science and engineering, and upgrades to technology infrastructure. The company believes these investments could increase annual processing capacity from about 20,000 contracts initially to as many as 100,000 contracts over the medium to longer term.
RentGuarantor has also launched an enhanced offering that combines its professional guarantor service with protection against property damage of up to two months' rent through a licensing arrangement with myDeposits. The service is designed to remove the need for tenants to provide a traditional cash deposit while offering landlords protection against both missed rental payments and eligible property damage.
RentGuarantor's CEO 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.
"I am also pleased to have officially launched our expanded service Offering, now including the ability to settle property damages, which I believe is a critical step in positioning RentGuarantor as a comprehensive service that simplifies the core aspects of securing rental accommodation in the UK."
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RentGuarantor's update points to a business benefiting from regulatory change and increasing demand for alternatives to traditional rental deposits. With revenue growth accelerating, positive monthly EBITDA achieved ahead of schedule and a broader product suite now available, the company appears well positioned to scale further. The planned AI investment also suggests management is focused on maintaining margins and operational efficiency as volumes increase.