The UK’s largest rental guarantee service, Housing Hand, has analysed data from the latest UK housing survey, which found that 21% of private renters – equivalent to 940,000 households – were asked to provide a guarantor when moving into their current property.
The huge increase in demand means that pre-qualification and rental guarantees are becoming increasingly important for tenants looking to sign a lease. The increasing demand shows that such services are no longer seen as “nice-to-haves”.
Demand for Housing Hand’s surety services increased by 50% in 2023, and several months in 2024 so far have even exceeded that level of growth.
“Labour’s plans to build 1.5 million homes are commendable, but the properties will not spring up overnight. This means renters will need to continue to do everything they can to secure the homes they want in the short to medium term. The fact that one in five have been asked to provide a guarantor shows the scale of the demand for such services.
“It is great news that the new government has immediately started to prioritise the urgent need for affordable housing, as planning is currently a major barrier to faster construction. An accelerated national housing programme will greatly help renters and buyers in the future.
“For now, however, tenants must do everything they can to secure the properties they need.”
Graham Hayward, Managing Director, Housing Hand
The service aims to support the rental process through a series of measures designed to benefit both tenants and Built to Rent landlords.
The offering includes a home finder service, a rental guarantee service and tenant pre-qualification, all designed to facilitate and accelerate access to accommodation.
“Competition for rental apartments is so high that tenants will do anything to be attractive to landlords. Those who already have all the paperwork in order, including a guarantee of paying the rent, can prove to landlords that the rental process will be quick and smooth.
“It is an agreement that benefits both parties in the rental business and at the same time takes into account the development of the rental market.”
Graham Hayward, Managing Director, Housing Hand
The Hometrack UK Rental Market Report for Q2 2024 provides context to the scale of the issues facing renters, showing that annual rental inflation for new rental properties currently stands at 6.6%, with 15 enquiries per property.
