Rising rents resulting in an increased need for guarantors

By Emma Martin, 12 June 2018

New data from HomeLet shows that rents are continuing to rise across the UK. Its latest rental index shows a 2% rise across the UK between May 2017-2018, with the UK average rent now £919.

Whilst 11 out of 12 regions surveyed experienced rises, London was hit particularly hard, with increases of 5.6% across the year, equating to a staggering £84 hike in monthly rent fees.

The rise in rents has been put down to changes in stamp duty and tax which have left many landlords with tighter margins than expected. In an effort to counter these policy changes a large percentage of landlords have been forced to pass the cost on to tenants.

But new data from guarantor service Housing Hand has revealed that tenants are struggling more than ever to keep up with rising rents as they continue to outpace wage increases. The figures from a recent survey indicates a huge increase in applications over the last year, with student applications up by 60% and working professional applications up by 156%.

Jeremy Robinson, Managing Director of Housing Hand said: “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.”

And unfortunately for the growing pool of tenants in the UK it seems as if things are unlikely to improve any time soon, with the Royal Institution of Chartered Surveyors (RICS) anticipating rises of 3% each year for the next five years, overtaking increases in house prices.

If you’re looking to streamline your property portfolio find out how much your buy-to-let is worth in seconds here

Recent Articles

Why are private tenants not taking out home insurance?

Many tenants are not investing in a huge essential for any tenancy

Read more

What is Section 21, and what is changing?

The government has proposed a ban on Section 21, so what will this mean for landlords and tenants?

Read more

What are tenants not willing to compromise on when it comes to rental properties?

Tenants share what they don't want to compromise on in their rental property and it might not be what you think.

Read more

The government has released further guidance on the Tenant Fee Ban

As the tenant fee ban draws ever closer, the government is releasing more information to help landlords and tenants with the changes.

Read more

‘Right to Rent’ to be scrapped?

The government's Right to Rent scheme was controversial from the start and now the RLA is calling for it to be scrapped entirely

Read more

Request information

Would you like to receive more information about buy-to-let investments? Fill in your details below and one of the team will get back to you.
Your name is required
Your email is required

By submitting your details you consent to being contacted by Knight Knox by telephone and email for this and similar property investments