More assistance for private renters hit by pandemic

PropTech supplier Canopy has launched a new service to help tenants affected by the pandemic. 

Last year Canopy was awarded a grant from the UK Research & Innovation service to improve the referencing prospects for those locked out of the housing market because of being furloughed or laid off. 

Affordability checks are a vital part of securing a rental property. Traditionally, these checks are carried out using three months of payslips to confirm the prospective tenant has the sustainable income required to pay the agreed rent. 

However, the pandemic impacted furloughed and self-employed workers, and many of those who rented were unable to move on from their existing properties, even if they were financially able, while others were unable to get onto the rental ladder to begin with.  

In response to this, Canopy has built technology that can identify those who have seen their incomes impacted by the pandemic. Whether that be those who took grants, were placed on furlough or were gig-economy workers and therefore couldn’t work often. 

An algorithm is then able to reflect an underlying affordability score, which takes into account the pandemic, but also the likelihood that their income levels would recover post-pandemic.

This feature will sit alongside the traditional affordability score on the referencing report Canopy generates, meaning prospective tenants can share a comprehensive guide of their affordability with estate agents or landlords, who in turn have more information to hand when deciding whether to let to a tenant.

Chris Hutchinson, chief executive of Canopy, comments: “The pandemic has been a tough time for everyone, and renters are no different. Many have found themselves unable to secure a property due to the complications the pandemic and multiple lockdowns placed on their finances. To a standard affordability check, many were deemed unable to provide the funds necessary to rent their chosen property.

“Landlords also face the challenge of being unsure whether they can trust a renters most recent income payments as a predictor of their ability to pay their rent, and as such, we felt it was essential to add this new feature to our offering. 

“An individual’s finances aren’t always black and white, so with this new technology we can establish what any grey areas mean and allow both renters and landlords to have a fuller picture”

Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.