We all know that buying a home is a distant dream for many young people without wealthy parents, but there is growing evidence to suggest that renting a property is also out of reach for hundreds of thousands of young people.
With recent research by credit report provider Noddle revealing that the average rental deposits across the UK is edging closer to £1,000, many would-be renters simply cannot afford to leave the family home.
The survey of 2,000 renters and landlords also found that landlords also often reject prospective tenants because of their credit history.
Jacqueline Dewey, managing director of Noddle, commented: “Our latest research suggests that it's not just buying property that's become increasingly difficult for young people today; renting is also out of reach for many too.
“As demand for rentals becomes greater, especially in the big cities, landlords can pick and choose who they want in their properties. Credit checks are becoming more and more important in the tenant selection process.”
Dewey’s views are shared by Ajay Jagota, founder of deposit-free renting firm Dlighted.
He believes that tenancy deposits are an “unnecessary obstacle” preventing many people from being able to rent a home. He also has reservations about standard tenant credit checks.
He said: “Standard tenant credit checks tell you so very little – just whether or not people have been made bankrupt or had County Court Judgments made against them This tells you next to nothing about their suitability as a tenant.”
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The Noddle article actually went on to say that tenants have to save up to 4 months to get on the rental ladder, not that it was impossible. It also ignored the fact that, whilst the average deposit is around £1,000 the average tenancy has 2-3 people actually making the deposit around £333-500. Credit score issues would not be resolved by a 'no deposit' solution (if that was the main reason for decline) and this can be worked around with a Guarantor or the simple explanation that their credit score is low because they have zero debt- most Landlords would like that advantage.
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