Freelancers in the rental market are facing increased challenges securing accommodation amid changes brought by the Renters’ Rights Act, which came into force in May 2024. The legislation prohibits landlords from requesting rent payments in advance, a practice that many self-employed tenants previously relied on to bypass stringent affordability checks. This has made it harder for those with irregular income streams but significant savings to obtain tenancy agreements.

One freelance writer began searching for a new place in August after being asked to leave a friend’s home. Despite having enough savings to cover a year’s rent, the writer was denied because their recent earnings fell short of landlords’ affordability criteria, which typically involve providing bank statements from the past three months to prove steady income. Freelancers without regular paychecks are often considered high risk, prompting landlords to require a guarantor—someone with stable employment, home ownership, and a high income—who can guarantee rental payments if the tenant defaults. Without such a guarantor, the writer found themselves sofa-surfing and confronted with high rental prices.

Experts acknowledge that freelancers have long faced difficulties securing rental housing. Even before the Renters’ Rights Act, tenants with salaried jobs passed checks more swiftly than those with freelance or variable incomes. Since the Act’s enactment, the market has grown tougher for freelancers who previously could use upfront rent payments to mitigate concerns about income variability. Many landlords now only accept guarantors earning at least 36 times the monthly rent annually, a qualification difficult to meet even for some friends or family, who may be reluctant to risk financial liability.

Several options have emerged for those struggling with these requirements. Professional guarantor services, some run by local councils or charities and others by commercial providers, offer legal agreements to cover unpaid rent or damages in exchange for fees. While this provides landlords with financial security and can open doors for tenants unable to meet standard criteria, these services vary widely, and potential users are advised to research carefully.

Another possibility is renting as a lodger with a live-in landlord, a setup exempt from the Renters’ Rights Act’s ban on rent in advance. This arrangement accounts for about a quarter of available flatshares and may be more accessible for freelancers.

Legal and financial experts also suggest alternative strategies. Landlords might accept broader evidence of a tenant’s financial stability, including savings and investments, to complement recent income statements. Additionally, some tenants consider renting through a private limited company, which is exempt from the legislation’s restrictions on rent in advance. However, this approach has significant drawbacks, such as fewer tenant protections and additional legal and tax obligations.

Finally, renters concerned about excessive rents can appeal to the first-tier tribunal (property chamber) within the first six months of tenancy to assess whether the rent aligns with the open market rate. The tribunal can confirm or adjust the rent, although there is a £47 application fee.

While the Renters’ Rights Act aims to protect tenants, its implementation has introduced complexities for freelancers and others with non-traditional income, prompting calls for more flexible, inclusive rental practices to address the diverse financial realities of today’s renters.