A guarantor agreement gives a landlord a second person — typically a parent, employer, or third party — who promises to pay rent or meet other tenancy obligations if the tenant defaults. Used correctly, a guarantor agreement is one of the strongest tools a landlord has for protecting against rent arrears. But many landlords do not enforce guarantor agreements effectively, or discover too late that the agreement is unenforceable.
What makes a guarantor agreement valid and enforceable?
A guarantor agreement must satisfy several requirements to be enforceable:
- In writing: Verbal guarantees are not enforceable for residential tenancies. The guarantee must be in writing and signed
- Executed as a deed: A guarantee is only enforceable as a deed if it is signed by the guarantor in the presence of an independent witness, who also signs and provides their full name and address. An unwitnessed signature may reduce the limitation period from 12 years to 6 years or, in some cases, affect enforceability entirely
- Signed before the tenancy starts: The guarantor must sign the agreement before or at the same time as the tenancy commences. A guarantee signed after the tenancy has started may be void for lack of consideration
- Clear scope: The agreement must clearly specify what the guarantor is guaranteeing — rent arrears, damage, or both — and any monetary cap or time limit on the guarantee
- Independent legal advice (optional but recommended for large guarantees): Courts have occasionally found that a guarantor lacked independent legal advice and that the agreement was signed under undue influence. For high-value guarantees, encourage the guarantor to take independent advice
Guarantee vs indemnity — the critical distinction
A guarantee creates secondary liability: the guarantor is only liable if the tenant fails to pay and the landlord has first demanded payment from the tenant. An indemnity creates primary liability: the indemnifier is jointly and primarily liable alongside the tenant, and the landlord can demand payment from either party without first going to the tenant.
- If the agreement says 'guarantee': You must first demand payment from the tenant, then claim from the guarantor if the tenant does not pay
- If the agreement says 'indemnity' or 'jointly and primarily liable': You can claim from the guarantor immediately without going to the tenant first
- Best practice: Use an agreement that contains both a guarantee and an indemnity, so that if the guarantee element is challenged the indemnity survives
How the Renters' Rights Act 2025 affects guarantor agreements
The RRA 2025 creates an important issue for existing guarantor agreements. From 1 May 2026, all existing fixed-term ASTs are converted to Periodic Assured Tenancies. If a guarantor agreement was specifically drafted to cover a named fixed-term AST, it may not automatically extend to the new PAT.
- Review all existing guarantor agreements: Check whether the agreement is specifically tied to the original fixed-term AST or covers 'the tenancy and any continuation or renewal thereof'. The latter wording extends to the PAT
- New tenancies from 1 May 2026: Ensure all new guarantor agreements expressly refer to the Periodic Assured Tenancy and use wording that covers the PAT and any statutory continuation
- No new ASTs: From 1 May 2026, new guarantor agreements cannot reference a fixed-term AST — the tenancy will be a PAT from the outset
- Take legal advice if uncertain: Where a significant arrears claim is at stake and the guarantee wording is ambiguous, take legal advice before demanding payment from the guarantor
Making a formal demand
Before pursuing the guarantor, check the agreement for any notice requirements. Some agreements require the landlord to notify the guarantor of arrears within a specified time. Failure to comply can release the guarantor from liability.
- Send written demand by recorded delivery: Address it to the guarantor at the address specified in the agreement (or at their current address if you have it). State the amount owed, the tenancy it relates to, and a payment deadline
- Provide a breakdown: Attach a rent account statement showing each unpaid rent date, amount, and the total outstanding
- Specify the legal basis: Reference the guarantor agreement by date and clause number, and state whether you are claiming under the guarantee or indemnity
- Allow reasonable time to pay: 14 days is customary for an initial demand. Courts expect parties to follow the Pre-Action Protocol for Debt Claims before issuing proceedings
The court process
If the guarantor does not pay following a formal demand and Letter Before Action, the next step is a county court money claim.
- Small claims track (up to £10,000): Claims up to £10,000 are allocated to the small claims track. Issue online at MCOL (Money Claim Online). Court fees are a percentage of the claim amount. If the guarantor does not file a defence, apply for default judgment
- Fast track / multi-track: Claims above £10,000 are allocated to the fast track or multi-track. Consider instructing a solicitor for claims above £25,000
- Evidence bundle: Prepare a bundle containing the guarantor agreement, tenancy agreement, rent account statement, correspondence (demand letters, email chain), and any evidence of the guarantor's awareness of the tenancy
- Limitation: For a deed, you have 12 years from the date each payment fell due (or from the date of the breach giving rise to the damage claim). For a simple contract guarantee, you have 6 years. Do not delay — the limitation clock runs from each individual missed rent payment
Enforcement after judgment
- Warrant of execution: Send county court bailiffs to seize and sell the guarantor's goods (limited effectiveness for individuals without significant personal property)
- Attachment of earnings: Order the guarantor's employer to deduct payments directly from their salary
- Third-party debt order: Freeze and recover funds in the guarantor's bank account
- Charging order: Secure the judgment debt against the guarantor's property — effective if the guarantor owns their home, but enforcement requires a separate order for sale application
Sources
- Limitation Act 1980 (legislation.gov.uk)
- Statute of Frauds 1677 s.4 — Writing requirement for guarantees (legislation.gov.uk)
- Renters' Rights Act 2025 (legislation.gov.uk)
This guide is accurate as at 31 May 2026. It is provided for information purposes only and does not constitute legal advice. Take independent legal advice before enforcing against a guarantor where the amount at stake is significant.