The latest English Housing Survey data has revealed that 21% of private renters – equating to 940,000 households – were asked to provide a guarantor when moving into their current property.
The huge increase in demand means that prequalification and rental guarantors are increasingly essential, rather than nice to have, for renters seeking to secure a tenancy.
“Labour’s plans to build 1.5 million homes are laudable but the properties aren’t going to spring up overnight,” comments Graham Hayward, Managing Director of the UK’s largest rental guarantor service, Housing Hand.
“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.”
“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. An accelerated national homebuilding programme will do much to help renters and buyers in the future. For now, though, renters must do all they can to secure they properties they need.”
The Q2 2024 hometrack UK Rental Market Report adds context to the extent of the problems that renters are facing. It shows that annual rent inflation for new lets is now at 6.6%, with 15 enquiries per home.
Housing Hand is supporting the rental process through a range of measures designed to benefit both tenants and landlords, from private individuals to purpose-built student accommodation and Built to Rent operators. Its offering includes a House Finder service, rental guarantor service and pre-qualification for renters, all designed to facilitate and speed up access to accommodation.
Increasing demand is demonstrating a shift from such services being seen as ‘nice-to-haves’ to something more essential. Already the largest rental guarantor service in the country for both students and working professionals, Housing Hand saw demand for its guarantor services grow by 50% in 2023, while several months so far in 2024 have surpassed even that level of growth.
“Competition for rental homes is such that tenants are keen to do all they can to appeal to landlords,” continues Hayward. “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. It’s an arrangement that benefits both parties in the rental transaction while also responding to the rental market’s direction of travel.”
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