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21 Bridge Street, Newport, NP20 4AN
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t: 0333 3447850
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An emergency repair would include issues that need to be fixed as soon as possible. Examples would include: burst pipe/flood, fire, vandalism, broken locks, blocked drains, blocked toilet and no heating/hot water. Anything that would be a danger to your health and safety or likely to cause damage to the property.

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Smell Gas?
In the event that you smell gas open all the windows, turn the gas off at the meter and call National Gas Emergency Service on 0800 111 999
For all other emergency issues, please call 01633 742371 and our friendly team will assist you.

Rental guarantors: the essential addition?

25 days ago
Rental guarantors: the essential addition?

Did you know 21% of private renters were asked to provide a guarantor when they applied to rent their current property? This finding was part of the latest English Housing Survey, which revealed almost 1 million tenants needed a backup financial plan.

Is there a reason why rental guarantors are becoming more essential in the private rental sector? Evidence lies in recent statistics, illustrating how affordability for everyone is being affected and how avoiding a financial deficit is crucial.

Rents continue to rise

Data held at the Office for National Statistics showed the average UK rent had increased by an estimated 8.4%, in the year to September 2024. It marks a persistent trend for more expensive costs for tenants. Something that has tracked more prominently upwards since 2021.

The value of rental arrears is increasing

Rent rises are part of a bigger cost of living picture, with food and fuel prices still challenging finances. Hardship among private tenants is sometimes reflected by rental arrears. Figures analysed by Reposit point to a 15% rise in the average rent arrears claim, £2,092 in the second quarter of 2024, compared to £1,816 in the first three months of the year. For context, the average rent arrears claim in the second quarter of 2023 was just £1,594.

When tenants miss rental payments, it has a direct impact on landlords, especially those who don’t have funds to cover the shortfall. The knock on effect is landlords themselves missing payments, with a new report by UK Finance delving deeper into the issue.

Landlords risk defaulting on their mortgage payments

It said at the end of Q2 2024 there had been a 51% annual increase in buy to let mortgages with arrears greater than 2.5% of the outstanding balance. Additionally, UK Finance said there were 710 buy to let mortgage possessions taken in Q4 2024, an increase of 33.8% on the same quarter in 2023.

Be aware of a rental arrears reform

While the above figures relate to recent trends, landlords need to look forward when establishing whether a guarantor is essential when renting out their buy to let. Taken into account should be the Government’s Renters’ Rights Bill, which is making its way through the Houses of Parliament, with a forecast introduction into law in 2025.

One of the most notable reforms is the proposal to increase the amount of arrears a tenant can accumulate before the landlord can serve notice to repossess the property. Currently, the duration is two months of unpaid paid rent but Labour want to increase this to three months of arrears.

This change will be in tandem with the scrapping of Section 21 notices. Until the reforms bed in and we see how the digitalisation of the court process pans out, it is virtually impossible to predict how long it will take landlords to regain possession in the event of rental arrears.

An insurance in changing times

Moving forwards, the wording of legally binding guarantor agreements will be vital, as they will stipulate how quickly after a missed rental payment a guarantor can be asked to cover the rent. It looks like a guarantor will be able to cover missed payments quicker than a rent insurance policy or deducting arrears from the deposit at the end of the tenancy, crucial as we transition to a new private renting model.

If you would like to speak with us about requesting a guarantor for a property you intend to rent out, or if you are renewing a tenancy soon, please get in touch.

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Should I Let Tenants Keep A Pet?

Should I Let Tenants Keep A Pet?

Published 2 months ago

Data circulating the property industry provides a clear message – landlords don't like tenants keeping a pet. However, it's important to note that in July 2024, the new Labour government announced as part of their Renters' Rights Bill that they will give tenants the right to request a pet, which landlords cannot unreasonably refuse. Landlords will however be able to request insurance to cover any potential damage from pets.

Currently, data from gov.uk states that only 7% of private landlords advertise their properties as pet-friendly. So, arguably, there are a lot of missed opportunities from landlords sticking with the 'no pets allowed' policy.

In this article, we'll explore what the UK law is on tenants keeping a pet, what the benefits of being pet-friendly are for landlords and share our advice on how to safely allow your tenants to keep a pet.

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