Tenants on salaries of £25,000 per year or more are being asked to provide a guarantor to secure a rental property. This was according to data by Goodlord which looked at tenancies between January 2020 and June 2023. This is due to high demand, lack of supply and inflation increasing rental prices.
More tenants are earning between £25,000 and £49,999:
According to the Office of National Statistics (ONS), the average salary for full-time employees in Britain was £33,000 in 2022. In 2020, fewer tenants (3.7%) were asked to provide a guarantor if they were earning £25,000 or more compared to 2023 5.84% of tenants are asked to provide a guarantor.
Furthermore, more tenants earning £50,000 or more per year are also being asked to provide guarantors. There has been a 92% rise in the number of tenants within this bracket who are asked to provide a guarantor to secure a tenancy compared to 2020.
The information in this post is valid to the best of our knowledge on the date of posting. It is advised that you seek independent advice based on your individual circumstances.
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