One in five tenancy applicants declined by agents

One in five tenancy applicants declined by agents

8:01 AM, 12th October 2022, About 2 years ago 2

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There has been a huge rise in the number of rental applications not being approved by letting agents, research reveals.

According to data from lettings experts Vouch, recent months have seen a massive spike in agents cancelling tenancy applications.

Vouch has been collecting data from the start of the year and they found that between January and April, there were an average of 509 tenancies being cancelled by agents each month.

However, the figures have been steadily rising with each passing month.

In August 1,959 applications were voided

For example, in August, a huge 1,959 applications were voided – nearly quadruple the rate recorded in the first months of 2022.

This means that as many as 19% of all tenancy applications across England were cancelled during August, compared to just 4% during January.

Tenancies can be cancelled for a range of reasons, including:

  • Tenants failing reference or credit checks
  • Having insufficient funds to cover the prospective rental cost
  • Applications are suspected of fraud.

This data only includes tenancies cancelled by letting agents and excludes incidences where the tenant themselves pulled out of the process.

More tenants are unable to meet their financial obligations

The experts at Vouch believe the rising cost of rent and wider increases in the cost of living means more tenants are unable to meet their financial obligations of their preferred tenancies.

In addition, the introduction of sophisticated anti-fraud measures is picking up suspicious tenancy applications before they are approved with greater accuracy.

‘Big increase in the number of tenancy applications which weren’t being approved’

Jaime Tillyer, the chief operating officer at Vouch, said: “The summer months saw a big increase in the number of tenancy applications which weren’t being approved.

“The reasons ranged from failure to pass credit checks or provide a guarantor, to suspected tenancy fraud.

“Whilst the reasons behind these cancellations are broad, what’s clear is that we are operating in a very turbulent rental market.”

She added: “As economic pressures increase and the lettings market continues to grapple with low levels of housing stock, trends such as this are likely to become the norm.”


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Comments

18:26 PM, 12th October 2022, About 2 years ago

The fear of section 21 being abolished means that less than perfect tenants will not accepted. Landlords and Letting Agents will have to become even more picky.

I see this already and have increased my rents 15% this calender year. Zero voids this year as there are so many desperate people out there as they want to hand cash over at first viewing to ensure they secure the property.

Reluctant Landlord

20:57 PM, 12th October 2022, About 2 years ago

today I rejected a 72 year old lady. Apparently she would have passed referencing for a one bed flat at £750pcm.

She has her income (pension) of £1400 pcm from a pension that goes into a joint account with her husband she is now splitting from. She has £7k in her own named account. She wants to pay 6 months up front and the deposit. No renting history, no guarantor.

The Agent wondered why I said no.

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