Tenants paying rent upfront have big advantage over r...

A new assessment of the private rental sector by guarantor service Housing Hand suggests that tenants paying rent upfront have a big advantage over rivals when it comes to securing a property,

Housing Hand says this is leading to an increasingly unequal lettings market with tenants with funds more likely to bag their chosen property.

This is happening just as analysts such as those at the Centre for Economics & Business Research suggest that over 400,000 households in the private rental sector will fall into rent arrears this year - a rise of a third on the arrears total in the early stages of the pandemic.

“At a time when the private rented sector is facing threats to its longevity from multiple directions, it is important that we do all we can to support both landlords and tenants. The private rented sector is a valuable resource that needs careful attention if we are to preserve it. This is why services such as pre-validation checks and rental guarantor services are so important” claims Graham Hayward, Housing Hand’s chief operating officer.

His firm is now working with PropTech player Canopy to support renters who don’t meet traditional referencing requirements.

While renters usually have to earn 2.5 to 3.0 times the annual rent in order to be eligible to rent a home, Housing Hand claims that using its product, they need 1.5 times net earnings to qualify. Housing Hand then serves as the individual’s rent guarantor.

Meanwhile, Housing Hand says it’s also invested in new technology and processes to speed up the pre-validation element of its service.

Housing Hand sales and business development chief James Maguire comments: “There’s no denying just how tough the rental sector feels for both tenants and landlords right now. By providing a bit of reassurance and support for all parties, we hope to remove some of the stress from the rental process, as well as delivering peace of mind for renters and landlords alike.”