Concerning new data released by Housing Hand has revealed that a number of factors are making it more difficult for a number of students to secure rental accommodation.
Rising rents, increasing household debt and poor credit histories are making it more difficult for a number of students to obtain rental properties.
Research from Housing Hand shows that, over the last quarter, there has been a 37% year-on-year rise in the number of students applying for a UK guarantor, due to landlords and letting agents being forced to turn away tenants who fail credit checks, or losing them to competitors who don’t ask tenants to pay six to 12 months in advance to secure a rental property.
Additional findings from the report show that the typical deposit for student or young professional rental accommodation in London is now £1,044, based upon an average monthly rent of £696. Based on these figures, potential tenants without a UK guarantor would have to stump up £5,220 to cover both the deposit and six months rent.
Even if would-be tenants are able to pay in advance, they could still need a UK guarantor, which could prove an obstacle for many leaving for university.
Jeremy Robinson, Managing Director of Housing Hand, noted: ‘Students and young professionals are struggling to secure rental accommodation as they are failing credit checks. It is understandable that letting agents and landlords have a big concern around rent arrears and many just don’t want to take the risk.’
Those who are interested in letting to students should ensure that they take out Rent Guarantee Insurance, in order to protect themselves should their tenants default on their rental payments.