Housing Hand has seen huge rise since May
A rental services provider says that it has seen a 50% rise in rent guarantor applications in the first 100 days after the implementation of the Renters’ Rights Act.
Housing Hand managing director Graham Hayward said: “The growth in rent guarantor applications we have received in the last 100 days has been phenomenal, as the market manages its changed risks in the new Renters’ Rights Act landscape.
“Most landlords can’t request or take more than one month’s rent upfront anymore, so they’re asking renters to provide guarantors instead.”
He said landlords are also relying on rent guarantor firms such as his to manage their Know Your Customer obligations, including sanction, PEP and source-of-income checks.
Missed rent claims remain constant
However, despite the changes implemented by the RRA, Hayward said Housing Hand hadn’t seen a major increase in missed-rent claims. Instead, he said the average has remained unchanged, with the company settling around £7M in payouts to accommodation providers in the past five years, running at an average of around £1.5m per year.
“The overall volume of payouts remains pretty static, demonstrating the efficacy of the work we do with accommodation providers to minimise their risk,” said Hayward.
“The rental landscape has changed significantly, and driven up demand for rent guarantors enormously, but landlords who have worked proactively with guarantor services have largely taken the changes in their stride,” he said.
