How much income do guarantors need to show for RPI?

[Howard1]

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The above is from a thread here

Questions about renting

I just wanted to know how this is fair for anyone who is remotely on benefits; as a single mother with no where to live I only earn £14,000 a year so that means I have to be homeless because no one wants to accept benefits ? [IMG_2390]

The thing which surprised me in that Openrent message was the idea that guarantors need to show 3x rent in disposable income. I thought it was 4x from Legal for Landords, which provides rpi for Openrent. Can anyone confirm?

[David240]

@Howard1

Well this doc from legal for landlords says 2.5 x for tenants and 3x for guarantors

Source: LegalForLandlords https://share.google/hCRRXwvbECaLFSHho

And same here

Source: LegalForLandlords https://share.google/uCC9E1RFdi6L74H7d

Best

[Colin3]

I work on 3times for either

[tatemono]

I work on 3 times for both

[Howard1]

OK, I was wrong. I’m pretty sure that that Legal for Landlords said to me 4x in 2023.

[Nilesh]

There is no catch-all rule for this. In central London many tenants pay anywhere between 40-60% of gross salary in rent at present. Some boroughs as high as 70-75%. Over a decade ago, I used to be able to let for about 30% of gross salary. All of my tenants have earnt well over the London median at the time of taking on their tenancy. The guarantor needs to be able to cover all of their own expenses and then the guaranteed rent as well. This often means earnings or income in excess of £100k in such circumstances. I appreciate that in other parts of the country, the guidance given above may be appropriate given the current state of PRS.