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.

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.