There has been a significant increase in the number of students and young professionals applying for a rent guarantor to secure accommodation, fresh research shows.
New data from Housing Hand reveals that over the past 12 months, there has been a jump in applicants for a guarantor, with student applications up by almost 60% and working professionals applications increasing by 156%, owed in part to the fact that rents are rising.
Jeremy Robinson, managing director of Housing Hand, commented: “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 letting agents are turning away students and young professionals as they are concerned about rent arrears and many just do not want to take the risk.
Some landlords and letting agents are starting to allow firms like Housing Hand to stand as a tenant guarantor, as it allows them to rent to a wider pool of secured tenants.
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.”