Overseas renters account for almost two-thirds of Foxtons' tenants, highlighting the growing challenge facing landlords when it comes to referencing applicants.

The firm, which has 60 branches across London and the Home Counties and more than 32,000 tenancies, reports that an estimated 63% of its tenants are from overseas.

Its figures come as Zero Deposit reports that average rents in the capital have risen to £2,294 per month, almost 50% higher than the UK average. London rents have increased by almost 10% in the two years since May 2024, rising from an average of £2,088. During the same period, UK average rents have risen from £1,252 to £1,383.

Foxtons has partnered with Zero Deposit to make its Guarantor+ product available to those tenants who might not meet traditional guarantor requirements. It says more than 25% of total available properties across letting agents and BTR operators are now available with Guarantor+.

Explains

Sam Reynolds, CEO of Zero Deposit (pictured left), explains that London is unlike any other rental market in the UK, with significantly higher rents, intense competition for homes and where a large proportion of tenants are relocating from overseas.

“In that environment, it is increasingly common for renters to be financially capable of affording a property, but unable to provide a traditional UK-based guarantor,” says Reynolds. “That can create unnecessary friction at the point of application, even when demand for housing is strong.”

Groups

Gareth Atkins, Foxtons’ managing director of lettings, adds that international renters, students and the self-employed - groups that make up an important part of London's rental market and who can comfortably afford their rent - might not meet traditional referencing criteria.

Says Atkins: “Landlords who can embrace solutions that broaden their reach to quality tenants while maintaining a smooth and secure lettings process will be best placed to minimise voids, maximise returns and benefit from the depth and diversity of demand across the capital.”

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