There has been a significant increase in the number of rental applications which are not being approved by agents, according to data from Vouch.
Data collected throughout 2022 has shown a massive spike in letting agents cancelling tenancy applications. Between January and April of this year, there were an average of 509 tenancies being cancelled by agents each month. The figures have then steadily risen with each passing month. 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 prospective rental costs, or if 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.
Experts at Vouch believe the rising cost of rent and wider increases in the cost of living mean more tenants are unable to meet the financial obligations of their preferred tenancies. In addition, the introduction of sophisticated anti-fraud measures are picking up on suspicious tenancy applications before they are approved with greater accuracy.
Jaime Tillyer, COO at Vouch, commented: “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, through 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. 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.”
Because the court system is not fit for purpose I always take a guarantor, if the tenant doesn’t know someone that trusts them why should I hand the keys to my house to them, better an empty property than a bad tenant the saying goes and is correct!
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We are very strict with our pre viewing qualification which saves so much time and wasted applications. What we have noticed is a decline in the quality of applicants and a loss of urgency, we now find ourselves chasing the information rather than applicants falling over themselves to get the information to us.
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Block viewings at a time we specify, all applicants pre-qualified and interested parties’ info presented to the Landlord – who then choose, and a holding deposit taken. No need to “not approve” anyone.
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I always used to find the number of no-shows on a Saturday at 50% till we called them prior…does anyone have any manners nowadays ?
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