Overseas tenants are facing challenges in securing rental properties in the UK, as landlords increasingly require UK-based guarantors. This is occurring even when these tenants can afford the rent, according to new data from Zero Deposit.
Rents in London have seen a significant increase, soaring to more than £2,000 a month. Since May 2024, London rents have risen by 9.9%, from an average of £2,088 to £2,294. Nationally, average rents have increased by 10.5% over the same period, from £1,252 to £1,383, though London rents remain almost 50% higher than the national average.
The growing demand for guarantors follows the implementation of the Renters’ Rights Act, which prevents landlords and agents from accepting large amounts of rent in advance. Sam Reynolds, CEO of Zero Deposit, noted that many financially capable renters are struggling to meet these guarantor requirements amidst intense tenant competition.
Data from Foxtons indicates that 63% of its tenants are from overseas. Gareth Atkins, managing director of lettings at Foxtons, highlighted that international renters, students, and the self-employed often struggle to meet traditional referencing criteria despite being able to comfortably afford their rent.