UK property landlords to ‘cut back on tenancies for under 35s’
Younger people may find it harder to rent in the UK property market moving forward, after a new survey found that a growing number of landlords operating in the private rented sector are thinking about only letting to older tenants.
According to the findings from Residential Landlords Association (RLA), undertaken by Sheffield Hallam University, as many as a third of landlords said they are considering not letting their properties to those under the age of 35.
The main concern they appear to have when it comes to younger tenants renting their property is that there is a higher risk of rent arrears with this age group than there is with older tenants. Some 79 per cent who rent to under 35s said this is an ongoing worry they face.
And it’s not just youngsters who could be facing difficulties moving forward. The research discovered that as many as two-thirds of landlords in the UK private rented market are not prepared to let to those who are on universal housing credit, and 44 per cent said they would not rent to students, with both groups concerned about not receiving their monthly rental payments.
Alan Ward of the RLA, commented: “This research suggests that landlords are moving away from accommodating under-35s, especially those who are on benefit, out of concern that they will not get paid. The report notes that landlords are not necessarily looking for higher rents or increased yields from their properties.
“Instead, the emphasis is on reducing risk, particularly in relation to rent arrears and the administration of welfare payments.”
The research also discovered that a growing number of younger people in the UK are having to apply for a guarantor when they rent properties. This is because young people and students often fail credit checks, and need someone to vouch for them financially so they can find somewhere to live.