All of this is putting pressure on the rental sector at a time when landlords are exiting en masse. Tory MP Bob Blackman warns that, “Many private sector landlords are leaving the market because it is no longer as profitable as it once was.”
The Bank of England, in an early 2023 Monetary Policy Report, advises that, “Contacts attributed this to a combination of factors including tax and regulation, higher maintenance and borrowing costs, and an inability to recoup increased costs in rents.”
All of this is bad news for landlords and renters alike, with the situation creating greater inequality in the private rented sector, according to UK rental guarantor service Housing Hand.
“The current state of the UK rental sector does much to favour wealthier renters, who can easily access large deposits and sail through referencing requirements. For those who cannot complete referencing as smoothly, the situation is increasingly difficult. And until more is done to encourage landlords back to the market, it seems unlikely to change for the better. Landlords are a vital part of the housing mix in this country, yet nothing is being done to encourage a rise in their numbers.” -Graham Hayward, Chief Operating Officer, Housing Hand
Housing Hand is working to support both renters and landlords. The company offers rental guarantor services to students and working professionals who do not have a personal guarantor, along with house finder services. Housing Hand also works with Canopy to support renters who don’t meet traditional referencing requirements, to provide greater equality of access within the private rented sector. The company also offers a no-deposit renting option, subject to landlord approval, to assist tenants into their first rental property or to ease the transition between rental homes.
“Faster, easier referencing and pay-monthly guarantor services can help to make renting more accessible and affordable. Our goal is to reassure both renters and landlords that they can enjoy a smoother, better rental experience.”
Graham Hayward, Chief Operating Officer, Housing Hand
