Rent Guarantee boosts income for major UK agency group
The Property Franchise Group has reported a 2% increase in lettings franchise revenue, driven by the expansion of its Rent Guarantee scheme protecting over 72,000 managed properties across its network.
The Property Franchise Group, which operates multiple well-known High Street agency brands including Belvoir, Hunters, and Northwood, announced a 7% rise in overall group revenue to £43.3 million for the first half of 2026. Lettings franchise revenue specifically increased by 2% to £10.6 million, supported by a managed lettings portfolio that remained stable at 149,000 properties.
The group highlighted the growing contribution of its Rent Guarantee product, which now covers more than 72,000 managed properties. This recurring revenue stream underpins the group’s financial performance and expansion plans despite a subdued sales market. The group also emphasised its role in assisting franchisees with the implementation of the Renters Rights Act, ensuring compliance with the new regulatory environment.
Details of the Rent Guarantee and group performance
The Rent Guarantee scheme offered by the Property Franchise Group provides landlords and agents with protection against rent arrears and related risks. Its rollout across the group’s franchise network has been a key factor in stabilising income streams amid ongoing market uncertainties.
Chief Executive Officer Gareth Samples stated that the group delivered a record first half performance, maintaining its managed lettings portfolio size while supporting franchisees through significant regulatory changes such as the Renters Rights Act. He expressed confidence in the group’s diversified income streams and recurring revenue base to meet full-year targets despite external challenges.
The group’s portfolio includes a broad range of agency brands such as CJ Hole, Clarke & Partners, Ellis & Co, Fine & Country, Martin & Co, Mullucks, Newton Fallowell, and The Guild of Property Professionals, among others. This diversity spreads risk and enhances resilience across different regional markets and customer segments.
Context of Rent Guarantee schemes in the UK rental sector
Rent Guarantee products have become increasingly popular with landlords and letting agents as a means to mitigate the financial risks associated with tenant default and rent arrears. These schemes typically cover lost rent, legal expenses, and sometimes property damage, providing peace of mind and income stability.
In the context of recent legislative changes, such as the Renters Rights Act, landlords and agents face new compliance obligations and potential challenges in rent collection and possession proceedings. Rent Guarantee schemes can therefore serve as a valuable risk management tool, helping to offset the impact of longer possession processes and increased tenant protections.
For franchise groups like the Property Franchise Group, integrating Rent Guarantee products into their service offering supports franchisees by enhancing their value proposition to landlords and improving revenue predictability.
Practical implications for landlords and letting agents
Landlords managing properties through agencies affiliated with the Property Franchise Group may benefit from the Rent Guarantee scheme’s protection, reducing exposure to rent loss and legal costs. This can be particularly important for smaller landlords or those with limited resources to pursue rent arrears or eviction proceedings.
Letting agents within the group’s franchise network gain a competitive advantage by offering Rent Guarantee as part of their managed services, potentially attracting more landlords seeking security in a complex regulatory environment. Agents should ensure they understand the terms, coverage limits, and claims process of such schemes to advise landlords accurately.
Maintaining a stable managed lettings portfolio of 149,000 properties indicates strong operational capacity and ongoing demand for letting services, despite broader market challenges. Agents should continue to monitor regulatory developments and tenant behaviour changes stemming from the Renters Rights Act to adapt their management practices accordingly.
Remaining uncertainties and future developments
While the Rent Guarantee scheme currently protects over 72,000 properties within the group, the precise terms and effectiveness of coverage in different scenarios remain factors landlords and agents must scrutinise. The evolving regulatory landscape, including potential further reforms to tenancy law or possession procedures, could affect the scope and value of such guarantees.
Additionally, the impact of wider economic conditions on tenant affordability and arrears rates may influence the demand for Rent Guarantee products and the financial performance of providers. Landlords should remain vigilant about changes in legislation and market conditions that could affect rent collection and property management risks.
Franchise groups and agents will need to continue supporting landlords with clear guidance on compliance and risk mitigation, while adapting Rent Guarantee offerings to meet emerging needs.
Considerations for landlords and agents now
- Review the terms and coverage of Rent Guarantee schemes offered by your letting agent or franchise to understand protections and exclusions.
- Ensure your letting agent is compliant with the Renters Rights Act and other relevant legislation, particularly regarding tenant onboarding and possession protocols.
- Maintain thorough records of rent payments, communications, and property inspections to support potential Rent Guarantee claims and regulatory compliance.
- Stay informed about changes in tenancy law and market conditions that may affect rent arrears risk and the suitability of Rent Guarantee products.
- Discuss with your letting agent how Rent Guarantee fits within your overall risk management strategy and property portfolio goals.
Supporting landlords through regulatory and compliance challenges
The Landlord Association (TLA) offers membership that provides access to detailed compliance resources and practical information tailored to the private rented sector. For landlords and letting agents navigating the implications of the Renters Rights Act and related regulations, TLA membership can be a valuable source of guidance on tenancy law, possession procedures, and rent protection strategies.
TLA is currently developing ORBIT, a new property management and compliance platform available in BETA testing. ORBIT aims to help landlords and agents organise property records, manage rental documentation, and monitor regulatory developments efficiently. Features in testing include tools to record inspections, repairs, and communications, which can support evidence gathering for Rent Guarantee claims and compliance audits.
Exploring TLA membership and ORBIT BETA access can assist landlords and agents in staying organised and prepared for ongoing regulatory changes and risk management needs.
Looking ahead, Rent Guarantee schemes are likely to remain a key element of landlord risk mitigation, especially as tenancy regulations evolve. Landlords should keep abreast of product developments and regulatory updates to safeguard their rental income effectively.
Sources: Letting Agent Today
TLA - The Landlord Association