Key takeaways from the Housing Hand guide to understanding renters
Aiming to improve the relationship between private rent landlords and their tenants , Housing Hands carried out a survey to understand the needs of renters.
Over 1,700 tenants were asked as well as students and working professionals, the report has highlighted some “major gaps in renters’ knowledge, across topics from guarantors and deposits to joint tenancies and utility bills.”
Housing Hands says, “Renters are typically confident entering the rental process: 73% of those we surveyed consider themselves financially literate when it comes to renting. But when we delve further, it’s clear that most of their knowledge comes from personal experience and they aren’t as well prepared as they think.”
With the proposal of the Renters’ Rights Bill, tenants are more uncertain now than ever about their rights. Some younger renters such as students are unaware of how the new RRB could benefit them and so have admitted they are hesitant about backing the new legislation.
The report showed that “Most renters aren’t aware of it, and even fewer understand how it’ll affect them.”
Renters’ Rights Bill
Out of the entire survey, “69% of renters haven’t heard of the Renters’ Rights Bill” and “75% of renters don’t understand how the Renters’ Rights Bill may impact them.”
The groups least aware were “Students (27%), and particularly international students (26%).”
Those who watch the news seemed to be more aware of the effects and that it would mean the end of fixed term tenancies.
However, “There was confusion about how the Bill would affect joint tenancies, with concern that one tenant giving notice could end the tenancy for all, leaving tenants in shared homes in a precarious position.”
Despite an overall agreement that the Renters’ Rights Bill “is a good thing for renters,” some participants were worried that landlords might increase the price of rent or sell off their properties (leaving them with nowhere to live), with some sharing stories of people they know this has happened to.
Housing Hand says in the report, “If this response is widespread, renters fear it could exacerbate existing issues with high rents in sought-after areas by reducing the number of properties on the rental market.”
How to make renters feel more secure
The report advises that landlords should tell tenants how the changes to the new renting system will affect them in order to make renters “feel safe and supported, ensuring a friendly relationship and reducing the likelihood of future disputes.”
Landlords are also told that they need to find a way to make their tenants trust them, “First time renters rely so heavily on the information given from the landlords, but they’re strangers, so you don’t know if you can trust them or not.”
How renters feel when looking for a first-time property
Housing Hands’ report shares that only 5% of first-time renters feel confident and just 2% feel knowledgeable. Much larger numbers feel overwhelmed (25%), uncertain (22%) and anxious (21%.)
Some are concerned that when they find the property that suits them, they won’t be accepted by the landlord. Respondents even had examples of when they had found properties, rushed home to make an offer and missed out as it was taken by someone else.
How did people find their current accommodation?
19% student accommodation website.
4% university/ student union recommendation.
Other takeaways
Finding a guarantor can be difficult for some students and so they feel their only option is to find a property that doesn’t require a guarantor. The survey showed that 38% wished there would be a guarantor service that could help them out, this might even boost awareness of the fact that a guarantor is often needed to rent properties.
When deposit protection schemes were discussed, 46% admitted they didn’t know how they worked. The report advises that, “Providing this information earlier in the process can give renters confidence that being asked for a deposit is legitimate and it won’t be unfairly withheld, especially first-time renters or those who’ve had bad experiences in the past.” Doing this could help landlords avoid potential tenants exiting the renting process when asked for a deposit. On top of this, 65% aren’t aware that deposit-less renting schemes exist.
With the new Renters’ Rights Bill looming, 56% don’t know what happens if housemates want to move out at different times and question if they will still have guaranteed accommodation if this happens.
Key statistics for student accommodation providers
To place an easier limelight on what accommodation students look for, here are the latest statistics from the report:
- 40% of students live in a shared house,
- 30% live in a home/studio alone,
- 23% live with friends,
- 67% would prefer to pay their rent monthly (compared to 29% who want to pay termly.)
Read the full report here .
