Rental sector support companies Canopy and Housing Hand have announced a partnership.
Housing Hand will serve as a rental guarantor for renters using Canopy who don’t meet traditional referencing requirements. Around one in 11 of all Canopy references over the last year required a guarantor, and the firm says this proportion has jumped to over 12 per cent in the last three months.
Canopy operates an onboarding service which aims to simplify processes for tenants and landlords; meanwhile Housing Hand has processed some 80,000 tenant applicants and guaranteed over £600m worth of rent over nine years.
It claims that typically individuals have to earn 2.5 to 3.0 times annual rental to be eligible to rent a property; with its guarantor service they need only 1.5 times net earnings to qualify.
Canopy chief executive Chris Hutchinson says: “We often hear about renters who are likely great tenants but are unable to meet the minimum criteria expected by the housing market. By partnering with Housing Hand we are able to support more of these renters in finding a new home, while ensuring that landlords actually have even more protection.
“Rising uncertainty in the wider economy is leading to a growing need for guarantor services and now our housing market partners can say yes to more potential renters while at the same time, reducing the risk they face.
“For renters, choice is key. For those who are asked to provide a Guarantor but are unable to find one, or don’t wish to use a family member, this service enables them to move into a property without having to pay more rent upfront. This partnership allows us to fulfil our mission of removing pain points for renters, letting agents and landlords, and the integrated user experience makes it seamless, and simple, for all involved.”