It’s frequently documented that young people across the country are struggling to buy their own homes without the help of wealthy relatives, but there is growing concern that renting a home is also “out of reach” for hundreds of thousands of young people.
With recent research from credit report provider Noddle revealing that the average tenancy deposit across the UK is now edging closer to £1,000, many would-be tenants simply can’t afford to leave their family homes.
The survey of 2,000 renters and landlords also found that landlords often reject prospective tenants because of their credit histories.
Jacqueline Dewey, the Managing Director of Noddle, says: “Our latest research suggests that it’s not just buying property that’s become increasingly difficult for young people today; renting is also out of reach for many too.
“As demand for rentals becomes greater, especially in the big cities, landlords can pick and choose who they want in their properties. Credit checks are becoming more and more important in the tenant selection process.”
Dewey’s views are shared by Ajay Jagota, the Founder of deposit-free renting firm Dlighted.
He believes that tenancy deposits are an “unnecessary obstacle” that prevents many people from being able to rent a home. He also has reservations about standard tenant credit checks.
He explains: “Standard tenant credit checks tell you so very little – just whether or not people have been made bankrupt or had County Court Judgments made against them. This tells you next to nothing about their suitability as a tenant.”
With measures recently announced regarding the inclusion of rent payment histories in tenants’ credit scores, it may be easier for landlords to determine whether a prospective tenant is a good fit.
However, we do remind landlords that, in the current economic climate, it’s essential to protect your rental income, to ensure that you still get paid if your tenants can’t. That’s where our Rent Guarantee Insurance comes in – this peace of mind cover protects you against tenant rent arrears. Get quick cover online now: https://www.justlandlords.co.uk/rentguaranteeinsurance