One in five renters forced to find rent guarantor

One in five renters forced to find rent guarantor

0:02 AM, 2nd August 2024, About 9 hours ago

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One in five private tenants has been forced to use a rent guarantor to secure their home as competition to secure a tenancy intensifies, research reveals.

Housing Hand has analysed the latest English Housing Survey data which revealed that 21% of private renters – 940,000 households – were required to provide a guarantor when moving into their current property.

The surge in tenant demand has highlighted the importance of prequalification and rental guarantor services, the firm says.

Properties aren’t going to spring up overnight

The firm’s managing director, Graham Hayward, said: “Labour’s plans to build 1.5 million homes are laudable but the properties aren’t going to spring up overnight.

“This means renters need to continue doing all they can to secure the homes they want in the short to medium term.

“The fact that one in five have been asked to provide a guarantor shows the scale of demand for such services.”

He adds: “It’s great news that the new government has immediately set out to prioritise the urgent need for more affordable homes, with planning currently being a major constraint to building at a faster pace.

“For now, though, renters must do all they can to secure they properties they need.”

Rent inflation has reached 6.6%

The rental guarantor service points to the recent Hometrack UK rental market report which revealed that rent inflation has reached 6.6%, with an average of 15 enquiries per property.

The firm says that last year it saw a 50% growth in demand for its guarantor services – with demand increasing this year for several months.

Mr Hayward said: “Competition for rental homes is such that tenants are keen to do all they can to appeal to landlords.

“Those who already have all their paperwork in order, including a guarantee that rent will be paid, can demonstrate to landlords that the rental process will be both fast and smooth.”


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