Problem with new strict Guarantor Requirements for renting

ireallycantyodel

Slithery said:

There are plenty of LL's that don't require a guarantor. Are you sure that you're not just being unlucky with your choice of properties?

ayupmeduck said:

Having home owners isn't a new thing. Are you not working once you relocate?

We are keeping our jobs. We can provide a home owner guarantor but they are retired. They now want a WORKING  homeowner guarantor. 
@Slithery Yes 5 years ago there was, I'll keep searching. A lot has changed since. More LL's than not stick to these new requirements 

ireallycantyodel

Angela_D_3 said:

When I returned from australia after 6 years with no credit rating and no references and no job actually i just paid 6 months in advance.  That fixed that.  

We will try that - for many people that is not realistic, however and I have already heard of LL's who don't accept that anymore either. 6 months rent is nice but what happens after that, they say. Additionally, many LL's now are suspicious of people who even offer that as, apparently, many criminals who turn the LL's house into cannabis farm make exactly the same offer 

ireallycantyodel

[Deleted User] said:

ireallycantyodel said:

After 5 years of living in Yorkshire we have to move back to my husband's hometown to help his parents. Seems like a lot has changed since the last time we rented from an agency. Most agencies now ask for a homeowner guarantor (and most of them want a working homeowner rather than a retired homeowner).
I guess that's a consequence of recent government guidelines that did away with agency fees and also the discrimination of DSS applicants. The problem is that it also leads to older renters, who no longer have working parents, being excluded from a lot of properties. As well as people whose parents live abroad.
I have seen some landlords say that means renters have no friends who trust them enough. But being a guarantor isn't just about mutual trust - it's a huge responsibility and I just feel uncomfortable asking friends. That doesn't mean they don't trust us. We have a very small family, our parents are both retired and mine live in Germany anyway. Extended family is just not very close to us. I have heard of guarantor services but I am not sure if they generally get accepted by LL's and they cost £300 + a year. I had quite a few snobby agencies on the phone who were a bit like "Oh well, tough luck". My parents in law would be happy to be guarantors but as I mentioned, they are retired.
I know that Landlords also need some reassurance and I have heard many horror stories about awful renter experiences. So I don't blame them but it makes it almost impossible to find anything. Some landlords don't even accept 6 months upfront as an alternative (although it would be difficult we might be able to do that depending on the amount of rent pcm)
Has anyone had a similar experience?

Additionally, we are not even stop-gappers who are in between buying houses, we would rent long term. We have been outbid by people who just need somewhere to live until they found a house but they just have stashes of cash from selling their house and don't mind shelling out £1500 quid pcm for a house the size of a shoebox because they have the spare money.
So we struggle to get a property because we can't access social housing (and we earn enough to not have to rely on that), can't provide a working guarantor and don't have enough cash to outbid someone else if we had to.
Does anyone have any suggestions on how to address this issue? I don't suppose that the government is going to make any changes or magically provide more housing anytime soon so I wonder what other option we have?

It is often a question of the landlord's insurance requiring tenants with annual income 2.5 times the rent or a guarantor 3 times the rent.

I have heard of people who earn 50 k between them requiring a guarantor - believe me, money isn't the issue for us. The issue is no longer how much you earn. A lot of these new laws that were brought in last year made LL's be extra careful. Some earn a ridiculous amount of money and still don't pay rent. A homeowner owns a house that can be repossessed. All these changes slowly started creeping in last year.

deannagone

LA's often do have rather difficult formula and rules for 'ordinary' people to meet.  Try OpenRent.., you'd be dealing with the LL direct then.  Most won't be as rigid.  

Thrugelmir

Will also be an impact of the current economic climate. Which has a long way to run yet. Understandable that anyone letting property at the current time will be ultra cautious. Very difficult to remove tenants once they are in situ. Likewise insurance rental cover for new tenants will have far tighter criteria. 

AlwaysWorking

I'm probably in the minority here but as someone who has a house rented out, I would not be impressed if a prospective tenant were to contact me directly. I pay an agent for a reason and would worry that, were the tenant unhappy with anything in the future, they would continue to bypass the agent and contact me. 

Wishing you luck OP in finding somewhere you like.  

chasingfreedom

I am renting and I've never been asked for any kind of guarantor. Up until last March we were renting through an agency (who were a pain in the backside) and even they didn't ask for one. I'm now in a private rental and we are hoping to buy in the next year or so all being well. I would be in exactly the same situation as you if we needed a guarantor, its not something I'd feel comfortable asking friends or family when I'm a grown woman with a good income and my own family. Sounds ridiculous to me. I hope you've just been unlucky with the agencies you've spoken to and you find something better. It can't be a general rule, not everyone has family to rely on and not everyone's family are homeowners anyway. Good luck.

ireallycantyodel

chasingfreedom said:

I am renting and I've never been asked for any kind of guarantor. Up until last March we were renting through an agency (who were a pain in the backside) and even they didn't ask for one. I'm now in a private rental and we are hoping to buy in the next year or so all being well. I would be in exactly the same situation as you if we needed a guarantor, its not something I'd feel comfortable asking friends or family when I'm a grown woman with a good income and my own family. Sounds ridiculous to me. I hope you've just been unlucky with the agencies you've spoken to and you find something better. It can't be a general rule, not everyone has family to rely on and not everyone's family are homeowners anyway. Good luck.

I think these guarantor shenanigans started with the lockdown and the changes in law for DSS, agency fees and caps in deposit. We never had an issue before either. We are also looking at private landlords..just see how it goes

A_Lert

Requiring guarantors first became common in the student lettings sector didn't it? I guess it's spilled over from that with landlords letting to professionals thinking they can pull the same thing.

The reality will be those without the right family and social connections, which means those from the 'wrong' social class, will pay the worst value prices for the worst homes. Which I suppose is how it always has been and always will be.

[Deleted User]

ireallycantyodel said:

chasingfreedom said:

I am renting and I've never been asked for any kind of guarantor. Up until last March we were renting through an agency (who were a pain in the backside) and even they didn't ask for one. I'm now in a private rental and we are hoping to buy in the next year or so all being well. I would be in exactly the same situation as you if we needed a guarantor, its not something I'd feel comfortable asking friends or family when I'm a grown woman with a good income and my own family. Sounds ridiculous to me. I hope you've just been unlucky with the agencies you've spoken to and you find something better. It can't be a general rule, not everyone has family to rely on and not everyone's family are homeowners anyway. Good luck.

I think these guarantor shenanigans started with the lockdown and the changes in law for DSS, agency fees and caps in deposit. We never had an issue before either. We are also looking at private landlords..just see how it goes

The DSS hasn't existed in Scotland, England or Wales since 2001 and I don't see why the abolition of most letting agency fees would increase the demand for guarantors. The guarantor shenanigans really ramped up with the longer notice periods for tenants under the Coronavirus Act 2020 and anmisties on evictions during certain periods in the last 12 months.  I'm sure some tenants are in financial difficulty and unable to pay but many are simply taking the !!!!!!.  It's no wonder landlords are wanting a second line of defence.  Not that any of this helps you.

Not every landlord will request a guarantor, I didn't when a tenant moved into my property last summer.  Hopefully you find someone who doesn't want a guarantor soon.