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 4 months ago 4

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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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Martin

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10:21 AM, 2nd August 2024, About 4 months ago

1.5 million houses in the 5 year term of the Parliament.
A bit of perspective, that's 37 houses per HOUR handed to a buyer 24/7 for the whole of the 5 years.

I am all for ambitious targets but keep it real!

GlanACC

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7:59 AM, 3rd August 2024, About 4 months ago

Trouble with a rent guarantor is they have to be bullet proof as well - so exclude anyone who is not working, doesn't have any assets (like a house or a car) and no retired parents / grandparents allowed.

I was lucky in the guarantor I had for a defaulter as he paid up in installments and cut his daughter of of his will for causing him stress (left his money to his grandkids in the end when they reach 18).

Mr Blueberry

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8:31 AM, 3rd August 2024, About 4 months ago

Banks and other lenders all ask for guarantees by way of insurance, etc. Similarly, a landlord is lending his house worth £100,000’s to a tenant for life. It’s, therefore, hardly surprising that if a landlord is gifting a lifelong interest in his property to a tenant, he will want some guarantee that rental payment will be made.

reader

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11:02 AM, 3rd August 2024, About 4 months ago

Renting a home is no different to any other rental transaction with of course the exception that it the provision of an essential service. Obtaining a guarantor to afford such provision is equally not unusual in such financial transactions.
The difference of course is the inability of the provider to easily rescind the agreement on breach by the tenant. Having a secure route to obtaining recompence against a guarantor eases the burden on landlords and helps to remind the tenant of their obligations.
It is the poorest in society who cannot obtain the benefit of a guarantor that suffer the most from the burdens imposed on landlords. Landlords are no different to any other provider of a financial service yet carry far greater risks where default occurs.

There are many landlords who specialize in those who can least afford accommodation but most of us do not deal with the unfortunate in life.

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