A guarantor agreement for a residential tenancy is typically executed as a deed — a formal legal document signed in the presence of a witness and delivered as a deed. The deed of guarantee can be a standalone document or incorporated into the tenancy agreement itself as a guarantor schedule. Where the guarantee is merely a letter (not executed as a deed), the absence of consideration can make it unenforceable as a simple contract — though a guarantee of an existing tenancy may have consideration in the landlord's agreement to grant or continue the tenancy.
Landlords frequently underestimate the importance of correct execution. A guarantor who has signed a poorly worded letter — rather than a deed — may successfully resist liability by arguing there is no enforceable contract. Similarly, a guarantor clause that was not properly incorporated into the tenancy agreement, or that was signed after the tenancy had already commenced without fresh consideration, may be unenforceable. Getting the guarantor agreement right at the outset is essential.
Deed of guarantee vs letter of guarantee — why execution matters
A guarantee is a promise by a third party (the guarantor) to be liable for another person's (the tenant's) obligations. For a guarantee to be enforceable as a simple contract, there must be offer, acceptance, and consideration. For a guarantee to be enforceable as a deed, it must be executed in accordance with the Law of Property (Miscellaneous Provisions) Act 1989:
- Simple contract guarantee (letter): Enforceable only if there is consideration — something of value flowing from the landlord to the guarantor in exchange for the guarantee. Where the guarantee is given at the same time as the tenancy is granted, the grant of the tenancy itself may constitute consideration. But where the guarantee is given after the tenancy has started (e.g. after a tenant defaults), there is typically no consideration — the letter of guarantee may be unenforceable
- Deed of guarantee: A deed does not require consideration — it is enforceable by virtue of being executed as a deed. This makes a deed the preferred format for landlords. A deed must: be in writing; be signed by the guarantor in the presence of a witness who attests the signature; be delivered as a deed (typically by dating and returning a signed copy). The witness must be present when the guarantor signs — a witness who signs separately, or who signs based on the guarantor's verbal confirmation, does not validly attest the signature
- Who can be a witness? The witness must be an adult who is not a party to the deed and not the guarantor's spouse or civil partner. A family member of the guarantor can be a witness in most circumstances (the law does not require the witness to be independent of the guarantor, only not a party to the deed). However, an independent witness provides stronger evidence of proper execution if the guarantee is later disputed
- Incorporated guarantor schedule vs standalone deed: Some landlords incorporate the guarantor clause into the tenancy agreement itself (as a schedule or a separate signature block). Others use a standalone deed of guarantee. Both approaches can work provided execution formalities are satisfied. Where the guarantor clause is in the tenancy agreement, care must be taken to ensure the guarantor is not a party to the main tenancy — adding a guarantor as a signatory to the tenancy agreement may inadvertently make them a joint tenant
What does the guarantor's liability cover?
The scope of the guarantor's liability depends entirely on the wording of the guarantee. Landlords should ensure the guarantee covers all the obligations the landlord wants to be able to enforce:
- Rent arrears: The guarantee should cover all rent payable under the tenancy, including any rent that becomes due after the tenant vacates but before a new tenant is in place (void period rent). The guarantee should specify whether it covers rent increases — including Section 13 increases post-RRA 2025 — or only the rent at the date of the guarantee
- Dilapidations and property damage: The guarantee should expressly cover the landlord's costs of repairing or replacing any items damaged or destroyed beyond fair wear and tear during the tenancy. Without this express provision, the guarantor's liability may be limited to rent alone
- Legal costs and court costs: A well-drafted guarantee includes the landlord's reasonable legal costs incurred in enforcing the guarantee itself. Without this provision, the landlord may win a judgment against the guarantor but face a costs shortfall
- Duration of the guarantee: The guarantee should specify how long the guarantor is liable. A guarantee expressed to cover 'the tenancy and any continuation thereof' covers periodic tenancies following expiry of a fixed term. However, questions arise about whether a guarantor's liability extends to a tenancy that has become periodic under the RRA 2025 — see the next section
The Renters' Rights Act 2025 and guarantor liability — the periodic tenancy problem
The Renters' Rights Act 2025 abolishes fixed-term assured tenancies from 1 May 2026 and converts all existing ASTs to periodic tenancies. This creates significant uncertainty about the extent of guarantors' liability for tenancies that were originally fixed-term but are now periodic by statute:
- Pre-RRA 2025 case law: Under pre-RRA 2025 law, where a fixed-term tenancy expired and became a statutory periodic tenancy, guarantors frequently argued that their liability under the original deed (which guaranteed a fixed term of, say, 12 months) did not extend to the statutory periodic tenancy. Some courts held that a guarantee of 'the tenancy' did not extend to a new statutory periodic tenancy, which was a separate tenancy created by statute
- RRA 2025 transition: Under RRA 2025, the conversion of existing ASTs to periodic tenancies from 1 May 2026 is a statutory conversion — there is no new tenancy agreement. This is legally different from the contractual periodic tenancy that arose at the end of a fixed term under the Housing Act 1988. The question of whether guarantors for existing fixed-term tenancies remain liable for the converted periodic tenancy is one that will be tested in the courts
- Best practice for new tenancies post-RRA 2025: All new tenancy guarantor deeds should expressly state that the guarantor's liability extends to the periodic tenancy granted from the outset (all post-RRA 2025 tenancies are periodic from day one) and to any rent increases notified via Section 13. Include wording such as: 'the guarantor guarantees the obligations of the tenant under the tenancy and any statutory or contractual periodic continuation thereof for the duration of the guarantor's liability period'
- Guarantor's liability period: Many guarantees specify a fixed liability period (e.g. 12 months, 24 months, or 'for so long as the tenancy continues'). For post-RRA 2025 periodic tenancies (with no fixed end date), guarantors are increasingly unwilling to give open-ended guarantees. A guarantee capped at a fixed duration provides certainty for both parties and may be easier to obtain from reluctant guarantors
Pursuing a guarantor — procedure and practical considerations
Where the tenant has defaulted on rent or has caused damage, the landlord can pursue the guarantor for the amounts owed. The procedure for pursuing a guarantor is the same as pursuing any other contract debtor:
- Formal demand: Send a written formal demand to the guarantor specifying the amounts owed, the basis for the claim (rent arrears, damages, costs), and a deadline for payment. This creates a paper trail and gives the guarantor an opportunity to pay without court proceedings
- Small Claims Court (up to £10,000): A claim against a guarantor for up to £10,000 can be issued in the Small Claims Track at the County Court. The online money claims portal (MCOL) is the simplest route. No legal representation is required. The court fee is proportionate to the claim value
- County Court for larger amounts: Claims above £10,000 are issued in the County Court on the Fast Track (£10,001-£25,000) or Multi-Track (above £25,000). Legal representation is usually advisable for claims of this size
- Guarantor's right to indemnity from the tenant: A guarantor who pays the landlord's claim has an automatic right of indemnity against the tenant — the guarantor can pursue the tenant for the amount paid. This does not affect the landlord's position but it means the guarantor is not necessarily the ultimate loss-bearer. Landlords should not allow concerns about the guarantor's relationship with the tenant to affect their decision to pursue the guarantee
- Check the limitation period: A claim on a deed is subject to a 12-year limitation period; a claim on a simple contract (letter of guarantee) is subject to a 6-year limitation period. The limitation period runs from the date the cause of action arose — typically the date the rent was due or the date the tenancy ended
Frequently asked questions
Does a guarantor agreement need to be a deed?+
Not legally required, but strongly recommended. A deed does not require consideration and is enforceable by virtue of proper execution (signed in the presence of a witness who attests the signature, delivered as a deed). A letter of guarantee requires consideration to be enforceable as a contract — which may be absent if the guarantee is given after the tenancy has started.
Is a guarantor still liable after the Renters' Rights Act 2025 converts a fixed-term tenancy to a periodic one?+
This is currently uncertain — the RRA 2025 statutory conversion from fixed-term to periodic creates a novel legal situation. Best practice for new post-RRA 2025 tenancies is to use a guarantor deed that expressly covers the periodic tenancy and any rent increases under Section 13, rather than relying on wording tied to a 'fixed term'.
How long is a guarantor liable for?+
The liability period depends on the wording of the guarantee. The guarantee should specify the duration — either a fixed period (e.g. 12 or 24 months) or 'for so long as the tenancy continues'. For post-RRA 2025 periodic tenancies with no fixed end date, a capped liability period provides certainty for both parties.
Can a landlord pursue a guarantor directly without first pursuing the tenant?+
Yes, unless the guarantee is expressed as a see-to-it guarantee (which requires the tenant to default first) rather than an indemnity. Most well-drafted landlord guarantor deeds are indemnities — the guarantor is primarily liable alongside the tenant, not merely as a fallback if the tenant cannot pay.