How is tenant affordability calculated?

To pass the affordability part of referencing, tenants must have a combined income of 30 times the monthly rental amount. For example, if the rent is £1,000, the tenants must earn £30,000. This calculation ensures the tenant can afford to pay the rent, whilst covering their bills and other outgoings. 

Savings can be considered for affordability analysis. Acceptable savings to pass a tenant or guarantor check are rent pcm x 6, each month for the last 6 months.

Savings can also be considered for affordability. This must be at least six times the monthly rent saved every month, for at least six months. For example, if the rent is £500, the tenant must have savings of £3,000 each month (6 x £500) for the last six months. Our referencing partners will verify the information through an accountant or bank manager.

If tenants do not earn this amount, they can put forward a guarantor. The guarantor must earn 36 times the monthly rent amount.