Students and young professionals have been applying for a rent guarantor to secure accommodation, new research highlights.
Over the past 12 months, data from Housing Hand has revealed that there has been a rise in tenants applying for a rent guarantor, with student applications up 60%, and young working professionals increased by 156%.
For some tenants, particularly those seeking accommodation during or in the years after university, it can be difficult to prove that they’ll pay their rent on time, as well as have the funds to do so for the duration of the contract, particularly with rents taking up a higher proportion of their salary.
Managing Director of Housing Hand, Jeremy Robinson, comments: “Unfortunately, a growing number of students and young professionals are struggling to secure rental accommodation, as they cannot provide a guarantor or are failing credit checks.
“With rising rent prices and deposits, many students can’t afford to put down several months of rent upfront.”
According to Housing Hand, more and more letting agents and landlords are turning away young people such as students and young professionals, due to fears over rent arrears. Many do not want to take the risk of applications from these demographics.
Some letting agents and landlords are allowing firms, such as Housing Hand, to act as a rent guarantor for the tenant. This not only helps reliable and long-term tenants get into higher standards of accommodation that’s right for them, but it means that landlords and letting agents alike have access to a pool of referenced tenants ready to let their properties.
James Foxen from Andrew Reeves, part of Countrywide, which accepts tenants guaranteed by Housing Hand, said: “Our landlords have been very impressed by the quality and quantity of tenants we can now provide, as a result of widening the pool of available tenants.
“Working with Housing Hand has been a great benefit to our business and we have seen a boost in tenants recommending us to friends and family. It has certainly helped us to further enhance our reputation locally.”