Several tenants around London needing to pay a year’s rent upfront
Letting agents London wide are confirming that a growing amount of tenants are struggling to meet the income requirements as well as not passing credit checks for lettings London.
As much as 1 in 5 potential tenants are not passing credit checks; 4 years ago it actually was 1 in twenty. Half of those who fail choose to pay a year’s rent upfront so that you can secure a property.
Tenants who are able to afford the monthly rent are finding that they’re failing credit checks thanks to their employment status. City staff are normally being employed in rolling 6 month contracts that credit businesses won’t accept and bonuses are also not taken into consideration.
“Cash rich” tenants who have got savings are also struggling as the credit checks request that a tenant is earning thirty times the monthly rent, so even if they have got the available funds they may find themselves failing the checks.
London letting agents are trying to work with tenants and also landlords to enable them to find a solution that fits both parties, including paying a larger deposit or providing a guarantor.