New partner portal delivers multiple benefits for landlords and PBSA providers

New partner portal delivers multiple benefits for landlords and PBSA providers

by Louise United Kingdom
  • Housing Hand reveals new portal, designed to reduce risk and increase revenue for accommodation providers
  • Partner portal is one of a number of new services being rolled out in 2021
  • Best-in-class solutions are raising the bar for rental guarantor services

UK rental guarantor service Housing Hand has launched a new partner portal to create a slicker onboarding experience for accommodation providers. The new feature supports providers to increase their revenue, by delivering more connections with potential tenants through Housing Hand’s House Finder Service, while decrease their costs thanks to the portals’ speedy process and ease of use.

Accommodation providers can also reduce their risk and enjoy peace of mind, safe in the knowledge that Housing Hand has paid out on 100% of all valid default claims over the past eight years.  

Housing Hand is the only award-winning provider of rental guarantor services in the UK. The trusted, insurance-backed company works with landlords, lettings agents, purpose-built student accommodation (PBSA) providers, universities and others to support students and professionals into rented accommodation. It does so by acting as a guarantor for the tenant, removing the barrier that the absence of a guarantor would otherwise present.

The new portal, which is packed with video explainers and interactive features, will make it easier and faster for accommodation providers to work in partnership with Housing Hand to ensure that their tenants won’t leave them out of pocket.

“The benefits of using a rental guarantor service extend to all those involved in the rental transaction. By making the process of working with our guarantor service even easier, we are reducing friction and risk at the heart of the rental process. This will enable landlords and other accommodation providers to maximise their revenue, while tenants can enjoy long-term peace of mind.”

Terry Mason, Group Operations Director, Housing Hand


Launched in early June, the new partner portal is one of a raft of new features being rolled out by the Housing Hand team in 2021, as part of the company’s significant growth during the pandemic. Newly appointed Head of Sales and Business Development James Maguire comments:

“We’re rolling out a range of improvements and new services over the course of this year, enhancing the user experience that accommodation providers and tenants have when they work with Housing Hand. We’re flexing the business in response to current and future market conditions, including addressing issues such as lifetime deposits and other aspects of the Renters’ Reform Bill. Watch this space for further developments!”

Landlords, letting agents, PBSA providers and universities are already benefitting from the new Housing Hand portal. As the country’s largest rental guarantor service, the company is keen to deliver best-in-class solutions for its partners, serving to raise the bar across the rental sector.

For more information, please contact Housing Hand today on +44 (0) 207 205 2625 or visit https://www.housinghand.co.uk/

Stark warning to parents as Only My Share’s loss ratio increases by 350%

Stark warning to parents as Only My Share’s loss ratio increases by 350%

by Louise United Kingdom
  • Only My Share warns of the dangers of joint and several liability clauses
  • Huge rise in payouts highlights the risk to parents
  • Withdrawal of pandemic-related government support creates even greater need for caution

Rent arrears protection service Only My Share has issued a stark warning to parents, after a rising number of claims has seen its loss ratio increase by 350% over the past year. The company is hoping that parents can learn from its experience in order to protect themselves financially, particularly in the face of pandemic-driven government support beginning to fall away.  

“Many families are likely to be feeling the financial pressure as this year progresses. Yet many are also unaware of precisely what they are committing to when signing a tenancy agreement with a joint and several clause in it. With students already seeking accommodation for the 2021/22 academic year, we are keen to warn parents to be cautious.”

Edmund Fulford, Relationship Manager, Only My Share

Under a joint and several clause, the tenant is liable for a housemate’s rent if that housemate doesn’t pay. This applies regardless of whether the tenants even know each other. Students looking to live in houses in multiple occupation (HMOs) and any parents who sign up as their guarantors therefore need to be on the lookout as they are also legally liable.

Only My Share, which is part of the Housing Handfamily, is an insurance-backed guarantee service that prevents individuals from being liable for their housemates’ rent, for a fixed cost of £99 per year for protection of up to £10,000. With the guarantee in place, if a landlord demands rent that another housemate owes, Only My Share steps in and makes the payment.

With so many students defaulting on their rent in the past year, Only My Share has come to the rescue time and again – hence the company’s 350% loss ratio increase. Relationship Manager Edmund Fulford comments:

“It’s been an expensive year for Only My Share, but the pandemic has also shown the strength and solidity of the brand. There’s a definite sense now that if we can get through everything that the pandemic has thrown at us then we can survive any challenges that the future may hold.”

Only My Share recently revealed a new partnership with StudentTenant.com, the UK’s largest online student letting agent. The company is also deep into partnership talks with two other companies, with announcements to follow in the coming months. According to Fulford, the last few months have been incredibly busy on all fronts. He concludes:

“Awareness of the dangers of joint and several clauses is growing, but at a very slow rate. We’re looking to fast-track that knowledge. The level of payouts that we’ve made as a result of the pandemic should demonstrate to students and their parents just how vulnerable their position is if they sign a rental agreement that includes a joint and several clause. Only My Share can de-risk that vulnerability by £10,000.”

Edmund Fulford, Relationship Manager, Only My Share

For more information, please contact Only My Share today on +44 (0) 204 579 5891 or visit https://onlymyshare.com/

Property industry movers and shakers: James Maguire moves to new role at Housing Hand

Property industry movers and shakers: James Maguire moves to new role at Housing Hand

by Louise United Kingdom
  • Maguire will oversee strategic partnerships, alliances and sales
  • He joins just as Housing Hand launches revamped partner portal
  • Maguire’s 20 years’ experience, including at Rightmove and Reapit, will support Housing Hand’s growth strategy

Market-leading UK rental guarantor service Housing Hand has announced the appointment of James Maguire as its new Head of Sales and Business Development. Maguire will oversee the delivery of Housing Hand’s strategic sales focus for the UK and Ireland, including building key partnerships and alliances to support market demand, as well as managing the company’s overall sales function.

Maguire brings 20 years’ experience of digital sales and marketing to the role. He has spent the last decade working in the property sector, including at Rightmove and Reapit.

“We are delighted to welcome James to the Housing Hand team and to such an important strategic role for the company over the coming years. We have an ambitious growth strategy, designed to support even more students and professionals into rental accommodation that would otherwise not be open to them – or only available with a vast deposit. James will play a key part in turning that vision into reality.”

Terry Mason, Group Operations Director, Housing Hand

Based in London, Maguire’s new role will see him working with clients across the UK and Ireland. It will include building partnerships with a wide range of accommodation providers, including landlords, purpose built student accommodation providers, universities and letting agents.

“I am joining Housing Hand at a really exciting time for the business, with the launch of our innovative new partner portal, which will help accommodation providers have full visibility of the tenant journey through Housing Hand. This in turn will assist them letting properties quicker to students and working professionals, as well as giving them access to leads of active tenants looking for accommodation in their areas.”

James Maguire, Head of Sales and Business Development, Housing Hand

Maguire will oversee Housing Hand’s experienced field sales and account manager teams, which focus on long-term partnerships with clients, with Housing Hand supporting their growth in letting both student and residential accommodation.

“The pandemic has impacted the lettings market in multiple ways. One result is that an increasing number of tenants are in need of Housing Hand’s guarantor services, so I’m delighted to join the business at such an important time.”

James Maguire, Head of Sales and Business Development, Housing Hand

For more information, please contact Housing Hand today on +44 (0) 207 205 2625 or visit https://www.housinghand.co.uk/

Forget the Euros: will Spain, Portugal or the UK win the battle of the property champions?

Forget the Euros: will Spain, Portugal or the UK win the battle of the property champions?

by Louise Portugal Spain United Kingdom , ,
  • Portugal may be the defending European champion, but how does its property market stand up?
  • Will Spain’s second home credentials win out?
  • Or is UK property still holding its own?  

Euro 2020 excitement is reaching fever pitch, with the first match (Turkey versus Italy) due to kick off in Rome on Friday 11 June. In total, 51 fixtures will be played across 11 host cities. Both Spain and the UK will be hosting matches (in Seville and London, respectively), as defending champions Portugal seek to retain their championship title.

But enough about football. What about the contenders’ property credentials – does it make more sense to buy property in Portugal, Spain or the UK right now?

“Each country has its own merits when it comes to buying property there. Whether it makes more sense to buy in the UK, rather than Portugal or Spain, for example, depends entirely on what you plan to use the property for – and how long you intend to hold onto it before selling.”

Dale Anderson, Managing Director, Fabrik Invest

Owning property in Portugal has plenty of appeal. The cost of living/holidaying there is a major draw. Numbeo reports that Portugal’s cost of living is lower than that of Spain, which in turn is lower than that of the UK. The Post Office Holiday Costs Barometer 2021, meanwhile, reports that Portugal’s Algarve is cheaper to visit that Spain’s Costa del Sol. And with property priced at €1,185 per square metre, Portugal’s homes are also cheaper than pretty much all of western Europe. Score one for Portugal.

Portugal also delivers an enviable lifestyle, particularly in the sun-kissed Algarve, with its stunning coastline, world-class golf and marine sporting facilities and its picturesque towns and villages packed with independent restaurants and cafés serving up the delicious local cuisine.

In terms of what you can get for your money in the Algarve, the homes at Amendoeira Golf Resort are a great example. Two-bedroom apartments cost from €285,000, while three-bedroom villas with private pools are priced from €490,000.

Owned and operated by Kronos Homes, Amendoeira Golf Resort presents buyers with a range of additional facilities, including golf, tennis, a gym, communal pools, a sports bar, a restaurant and a stunning new clubhouse. For those currently fixating on the Euros, there’s a natural grass football field built to FIFA’s standards, along with two AstroTurf five-a-side football fields.

So, what does Spain have to offer? Like the Algarve, southern Spain offers a superb outdoor lifestyle, with 300 days of sunshine per year. It also provides a wealth of golf and other sporting facilities, along with a wonderfully scenic coastline. Spain’s coast is on the Mediterranean, so it wins out over Portugal when it comes to sea temperatures (as Portugal sticks out into the Atlantic).

For those who like to treat themselves while on holiday, Spain is also the place to be. From designer clothes to yachts, the country’s southern shores are awash with high-end goods and upscale beach clubs (far more so than that Algarve, which tends to deliver luxury in a rather more laid-back fashion).

“Spain has long been a favourite destination for British holidaymakers and second home buyers. Its vibrant towns, superb gastronomy and cosmopolitan atmosphere are ideally suited to relaxation and enjoyment.”

Marc Pritchard, Sales and Marketing Director of Taylor Wimpey España

Spain also wins out over its Iberian neighbour when it comes to flight times – just. Flying from London to Alicante takes around 2 hours and 30 minutes, while London to Faro is closer to 2 hours and 50 minutes.

In terms of properties, the Costa del Sol has a wealth of options available. Leading Spanish homebuilder Taylor Wimpey España offers everything from golf apartments to stunning beachfront homes.

A property at Sun Valley, for example, provide residents with all the benefits of living at the prestigious La Cala Golf Resort. Priced from €251,000 for a two-bedroom apartment, the south and southwest facing homes enjoy panoramic golf and sea views and come with a communal pool and infant splash pool. The individual apartments all feature large terraces and spacious interiors.

Where does all this leave the UK? Well, while Portugal and Spain are winning big with second home buyers, investors looking for passive income are turning to the UK, according to property investment firm Fabrik Invest. The company cites the UK’s stability as an investment destination as a key part of its appeal

Owning a rental property in the UK certainly comes with plenty of earning potential. The Exchange in Preston is an excellent example. It offers contemporary urban apartments within one of the city’s key redevelopment zones – Stoneygate. On-site amenities include a gym, residents’ lounge, elegant rooftop garden, concierge and bike storage. Not only are the homes set to benefit from the impact that the Stoneygate masterplan has on the local area, but the North West region is projected to lead the UK in terms of property price growth. Savills predicts that prices in the North West will increase by 28.8% in the five years to 2025.

So… which country wins? It seems the answer really does depend on what you want to own the property for. And as for who will win Euro 2020, only time will tell!

For full details of Amendoeira Golf Resort, please email realestate@amendoeiraresort.com, call (+351) 282 320 820 or visit https://www.amendoeiraresort.com/en/

For more information on Taylor Wimpey España, call 08000 121 020 or visit https://www.taylorwimpeyspain.com/. If you reside outside of the UK, you will need to call 00 34 971 706 972.

For more information on Fabrik Invest, call 020 8175 9891, email enquiries@fabrikinvest.com or visit www.fabrikinvest.com

What has the stamp duty holiday done for property investment in the UK?

What has the stamp duty holiday done for property investment in the UK?

by Louise United Kingdom
  • Fabrik Invest reports increased activity due to stamp duty holiday
  • Investors in Chatham Waters save over £100k in just over 3 months
  • First-time landlord numbers swelled by chance to save

As the stamp duty holiday draws to a close, property investment firm Fabrik Invest reports that the policy, which was introduced in July 2020, has done much to support investment in the UK property market. That investment is sorely needed; Hamptons reveals that the UK rental sector now has 250,000 fewer rental homes than it did at its peak back in 2017.

“The stamp duty holiday has delivered on a number of fronts after nearly a year of operation. It’s not just families seeking homes with more space who have been spurred into action – many investors have also seized on the opportunity to make a substantial saving.”

Dale Anderson, Managing Director, Fabrik Invest

The savings certainly have been substantial. Under the stamp duty holiday, anyone who buys a property and completes by 30 June 2021 doesn’t have to pay tax on the first £500,000 of its value. Fabrik Invest has seen investors rushing to take advantage of this. In a little over the past three months, investors in one development alone have saved more than £100,000 in stamp duty that would otherwise have been due.

The development in question is Chatham Waters in Kent. Just over half an hour from London by train and completed in November 2020, the one, two and three-bedroom homes offer waterfront living with a range of high-specification on-site amenities.

“In the last six months, our Chatham Waters investors have saved over £60,000 thanks to the stamp duty holiday. The biggest savers were first time buyers, with some having saved more than 50% of the stamp duty that they would otherwise have had to pay. The holiday has definitely supported more activity in the buy-to-let sector and encouraged some first-time landlords to get involved.”

Dale Anderson, Managing Director, Fabrik Invest

Interestingly, Hamptons has also noted the prominence of first-time landlords, with Head of Research Aneisha Beveridge noting that, “The stamp duty holiday has tempted more small and first-time landlords into buy-to-let, reversing a shift towards portfolio investors.” Low interest rates have also played a role in attracting new landlords to the sector – a shift that many see as vital to buy-to-let’s long-term appeal.

“The UK is struggling with a fundamental shortage of homes. Government policy has driven down the number of available rental properties over the past four years, despite continuing growth in the number of renters. It is our hope that those attracted to buy-to-let investment for the first time as a result of the stamp duty holiday will now remain within the sector and further increase the number of homes available to the UK’s renters.”

Dale Anderson, Managing Director, Fabrik Invest

For more information, please contact Fabrik Invest on 020 8175 9891 or enquiries@fabrikinvest.com, or visit www.fabrikinvest.com

Only My Share flags up growing concern, as 1 in 5 guarantors baulk at rent responsibility

Only My Share flags up growing concern, as 1 in 5 guarantors baulk at rent responsibility

by Louise United Kingdom
  • 1 in 5 guarantors walking away from signing due to joint liability for rent in HMOs
  • 38% month-on-month sales uplift for Only My Share’s solution to this issue
  • Agents saving time and headaches by promoting rent arrears protection

Rent arrears protection service Only My Share has reported a 38% month-on-month uplift in sales, as confidence returns to the student rental market once more. Students confirming that they will be renting for the 2021/22 academic year have also driven a 48% uplift in sales compared to the same period last year.

However, the company has also flagged up a growing area of concern. Student letting agents are reporting that around one in every five guarantors is now disputing the element of the tenant’s guarantor agreement that holds them jointly liable for the rent.

“Many students rent in Houses of Multiple Occupation, known as HMOs. Under a joint and several liability clause in a tenancy agreement, if one tenant doesn’t pay their rent, everyone else becomes liable for it. With awareness of this growing, along with a fragile economic backdrop, there is an increasing reluctance by many individuals to sign up as guarantors.”

Edmund Fulford, Relationship Manager, Only My Share

Agents are reporting having to spend hours on the phone explaining joint and several liability clauses to potential renters and their guarantors. Others have been forced to remove such clauses from tenancy agreements altogether.

Only My Share, which is part of the Housing Handfamily, has been working closely with agents to deliver a solution. The company’s rent arrears protection offering means that the tenant – and their guarantor – will not be liable for a housemate’s unpaid rent. It is a game-changer for many renters as it delivers peace of mind. For the agents seeking to house them, it means more contracts being signed and a faster process of doing so.

“We’re really happy to be working with Only My Share. We have been able to offer our student tenants and their guarantors an extra service which provides peace of mind.

“The service is especially helpful for tenants moving into HMO properties. Some tenants and their guarantors can be nervous about signing joint and several liability contracts due to the potential financial risks if another housemate defaults on their rental payments – and OMS is a brilliant solution to this problem.”

Ryan Hough, Head of Marketing, studenttenant.com

Only My Share’s partnership with studenttenant.com, the UK’s largest online student letting agent, is one of a number of arrangements that has opened up rental arrears protection to renters across the UK in the past few years. In the past year in particular, agents have noted an increasing number of guarantors who are keen to sign up for Only My Share’s service when signing the guarantor agreement.

“There are two key factors at play here. One is the wider economic picture that has resulted from the pandemic. Income insecurity is giving many people pause, whereas previously they would have just signed on the dotted line. But we are also working hard to raise awareness about joint liability. We’re working with universities and student unions in order to make students – and their guarantors – more aware of what it is that they are signing up to when they rent rooms in HMOs.”

Edmund Fulford, Relationship Manager, Only My Share

For more information please contact Housing Hand today on +44 (0) 204 579 5891 or visit https://www.housinghand.co.uk/

Preston showcases the potential of the North, as Fabrik Invest reveals details of The Exchange

Preston showcases the potential of the North, as Fabrik Invest reveals details of The Exchange

by Louise United Kingdom
  • 200 stylish homes launched, as Preston rents rise at one of fastest rates in UK
  • Investors seek to capitalise on £434 million worth of public funding
  • Exchange residents to benefit from host of amenities and on-site neighbourhood creation

Property investment company Fabrik Invest has revealed details of its newest development: The Exchange, in Preston. It is the second development that the company is offering in the rapidly growing northern city, following in the wake of the hugely successful Bishopgate Gardens.

“There’s so much dynamism in the property sector in the North right now and Preston is really showcasing that. Not only are property values rising rapidly, but so are rents, and there’s strong, sustained demand for well-located homes with the right amenities.”

Dale Anderson, Managing Director, Fabrik Invest

Developed by respected local firm The Heaton Group, The Exchange will include rooftop gardens, a gym, a residents’ lounge, bicycle storage and a concierge. Commercial units on the ground floor, with carefully procured tenants, will deliver neighbourhood creation as well as the homes themselves. The 200 apartments will be split across three buildings. They range from one to three bedrooms, with prices starting at £136,000. Construction is already underway and completion is due in 2023.

In 2019, rents in Preston rose faster than in any other city in the North West and by Q1 2020, the city had made it into Zoopla’s index of the top ten cities with the highest annual rental growth in the UK.

The picture is certainly a positive one for the UK’s northern cities. JLL reports a 57% increase in northern letting activity so far in 2021, when compared with Q1 2019. And Savills has pegged the North West as leading the UK for projected property price growth, forecasting increases of 28.8% across the region in the five years to 2025 (versus 21.1% nationally).

The Exchange is poised to allow investors to take full advantage of this regional growth, as well as of the funds being channelled into Preston itself. £434 million worth of public funding has been allocated to regeneration work in the local area, along with £19.9 million from the Towns Fund, as announced in March.

“There is some real game-changing regeneration work taking place in Preston right now. That’s exciting from an investment perspective, as the work that’s underway has the potential to drive up property prices substantially. Investors who choose Preston therefore have a lot to look forward to over the coming years.”

Dale Anderson, Managing Director, Fabrik Invest

For more information, please contact Fabrik Invest on 020 8175 9891 or enquiries@fabrikinvest.com, or visit www.fabrikinvest.com

Universities reach out to rental guarantor services as in-person learning resumes

Universities reach out to rental guarantor services as in-person learning resumes

by Louise United Kingdom
  • Housing Hand sees increase in universities exploring commercial arrangements
  • Universities being asked to do more with less, creating financial pressure points
  • Imbalance between returning students booking accommodation and first-years hesitating

UK rental guarantor service Housing Hand has reported an increase in the number of universities enquiring about commercial arrangements, as Covid-related pressures continue to impact the UK’s higher education sector. The increase speaks to the difficulties that universities are facing as they seek to do more with less, welcoming all students back to in-person learning from 17 May.

Universities have spent the last year in crisis mode. They have had to deal with multiple lockdowns, set up widescale home/virtual learning and manage the impact of students who have tested positive for Covid. All while dealing with the economic fallout of a lower intake of students for the 2021/22 academic year as Covid fears persist (mainly fewer EU and other international students, but also those from the UK).

“Universities being overworked and under-resourced is nothing new. Budget cuts were already biting, even before the pandemic. However, Covid has exacerbated the financial difficulties that universities and their students face. Increasing rent relief bills are taking their toll and many universities are now seeking alternative ways to support their students to remain in their accommodation should they experience financial hardship.”

Jeremy Robinson, Group Managing Director, Housing Hand

 
Many students struggle to provide a qualifying UK rent guarantor when renting in the private sector. Housing Hand partners with universities in order to help alleviate this issue for their students. The award-winning company acts as a rental guarantor service for students from the UK and overseas, covering rent, damages and dilapidations.

The university model enables higher education institutions to partner with Housing Hand as a white label service. The university promotes the service to its students, while Housing Hand provides integration, co-branded application pages with an affiliate link and marketing materials. Students pay a reduced fee for the Housing Hand service, while the university doesn’t need to worry about the admin side of the process.

“The way we work with universities provides a win-win. Students can access the rental guarantor service they need at a lower cost, while the university takes on no financial risk. The risk sits with Housing Hand, and is backed by quality and financially rated insurance products. With some unusual fluctuations in the usual student rental patterns due to Covid, this no-risk approach is inspiring increasing numbers of universities to investigate the role of rental guarantor services.”

Terry Mason, Group Operations Director, Housing Hand

Although UK universities expect to re-open for in-house lessons this month, many students are hesitant to enrol for the 2021/22 academic year while Covid remains a threat. This is compounded for European students by Brexit for all international students by the current difficulties in moving between countries.

We can see this playing out across houses in multiple occupation (HMOs), where returning students have provided a steady stream of bookings. However, the purpose-built student accommodation (PBSA) sector has been a very low uptake of rooms by its traditional cohort of first years.

“As the UK’s vaccination programme progresses and confidence improves, it’s likely that there will be a last-minute dash for places. This will create a flurry of activity in the accommodation sector, as students rush to secure rooms with far less planning than would usually occur. With costs spiralling and high levels of debt, UK universities are already under significant pressure. They need to do all they can to accommodate a rush of last-minute enrolments, including helping students to find the accommodation they need.”

Terry Mason, Group Operations Director, Housing Hand

For more information please contact Housing Hand today on +44 (0) 207 205 2625 or visit https://www.housinghand.co.uk/

75% of property investors are focusing on lower value properties

75% of property investors are focusing on lower value properties

by Louise United Kingdom
  • Fabrik Invest finds 3 in 4 buyers are seeking properties below £160k
  • Suburbs and tertiary cities are the big winners
  • Investors also looking for lower deposits

The property investment specialists at Fabrik Invest have highlighted another pandemic-driven change to the UK property market. Conscious of the wider economic backdrop, property investors are increasingly seeking out properties that offer both lower entry points and lower deposits.

“We’re seeing a growing trend towards properties priced between £80,000 and £160,000, with 75% of our investors now seeking out these homes. This is driving a shift in the locations being sought, with tertiary cities and suburbs of larger cities attracting particular interest.”

Dale Anderson, Managing Director, Fabrik Invest

Fabrik Invest’s Dale Anderson cites Preston in Lancashire as a case in point. Apartments there at Bishopgate Gardens, priced from £120,000, have seen strong, sustained demand from both UK investors and those from overseas. Dudley in the West Midlands is another example, with investors being drawn away from higher priced Birmingham city centre properties in favour of commutable homes in Dudley, some 17km away.

Nor is it just property prices that investors are scrutinising so carefully. Many are also being drawn towards investment properties with lower deposits. While a 25% deposit is fairly standard across the buy-to-let property market, investors are increasingly searching for properties with deposits as low as 10%.

“The buy-to-let market is still very busy, but we’re definitely seeing signs of the longer-term influence of the pandemic on investor behaviour now. Lower value homes with lower deposits and those nearing completion are selling very well.”

Dale Anderson, Managing Director, Fabrik Invest

Bishopgate Gardens completes later this year, in September. The site is currently a hive of activity, with kitchens going in and plasterers and plumbers hard at work. The finished apartments will be complemented by shared social spaces and retail units on the ground floor, all designed to offer an exceptional living experience. The 24/7 concierge will deliver drinks to residents enjoying the roof gardens on the eighth and eleventh floors, while a stylish lounge area, coffee pod café and shared working space cater to residents’ various needs.

Fabrik Invest is working closely with clients to provide opportunities such as this, with the right entry point to suit buyers’ changing requirements. The company is also running a monthly educational webinar, looking at market trends, specific locations and property investment more broadly.

For more information, please contact Fabrik Invest on 020 8175 9891 or enquiries@fabrikinvest.com, or visit www.fabrikinvest.com

Covid crisis highlights value of rental guarantor services

Covid crisis highlights value of rental guarantor services

by Louise United Kingdom
  • Rental guarantor services address key concerns for tenants, landlords and letting agents
  • Eviction ban end to result in further pain for landlords and tenants alike
  • Using personal guarantors now seen as even riskier than previously

The pandemic has seen tenants, landlords and letting agents all suffer in different ways as a result of Covid’s economic fallout. When the eviction ban ends on 31 May, that situation is likely to get worse – and not just for those tenants who have been unable to pay their rent. Jeremy Robinson, Group Managing Director of UK rental guarantor service Housing Hand, explains:

“The delays in the courts for landlords looking to evict non-paying tenants are likely to be unprecedented, with the backlog of evictions having built up since the government first put the ban in place. This piles even more stress onto landlords who are already having to cover mortgages on properties that aren’t providing any income. It also means letting agents going without their cut of the rent for many more months while courts process the backlog. And for tenants, there’s the additional stress of falling even further behind with their rent while waiting to be taken to court. Everybody loses.”

Jeremy Robinson, Group Managing Director, Housing Hand

While nobody saw the pandemic coming, there are plenty of lessons to be learned about risk avoidance for future major crises. One is the value of rental guarantor services. These are services that the tenant pays for to ensure that, should they become unable to pay their rent, it will still be paid: the guarantor company steps in and pays 100% of it for them. The tenant gets to keep their home, the landlord continues to receive an income and the lettings agency continues to receive its share.

The pandemic has also highlighted the value of rental guarantor services when compared with personal guarantors. Personal guarantors who were in a position to act as such at the outset of the pandemic may now be in very different financial situations. Relying on a personal guarantor for rent payments now carries much the same risk as relying on the tenant.

There are two other options available to landlords looking to ensure that non-payment of rent doesn’t lead to non-payment of their mortgage. One is rental insurance, where the landlord simply buys a policy, then makes a claim in the event of rent not being paid. The other is a company guarantor, which is where a company agrees to act as a guarantor for one of its employees. However, both of these models are flawed, according to Housing Hand’s Group Operations Director, Terry Mason:

“Insurance companies are known for not paying out on every claim. This has the potential to leave landlords unexpectedly out of pocket. Company guarantors, meanwhile, may be in very different financial positions than they were at the start of the pandemic, so carry risks of their own.”

Terry Mason, Group Operations Director, Housing Hand

For tenants and landlords looking for maximum protection, rental guarantor services that are underwritten by an insurer offer the greatest peace of mind. Housing Hand, for example, is backed by Lloyds syndicate insurance. It delivers 100% pay-out and continues until the end of the tenancy.

While many landlords – and their letting agents and tenants – have missed out on the benefits of rental guarantor services during the pandemic, those looking for a reliable safety net in future have everything to gain.

For more information, please contact Housing Hand today on +44 (0) 207 205 2625 or visit https://www.housinghand.co.uk/