UCL withdraws rent guarantor scheme for students in private accommodation
Source: UCL Image store
UCL guarantor scheme – which allowed many overseas and low-income students to access private accommodation – has been terminated without warning for the 2020-21 academic year. Anna Vall Navés explains.
From September onwards, UCL will no longer act as a guarantor for students renting private accommodation. For those who have previously depended on this scheme or were banking on it for the coming academic year, the university’s abrupt change in policy has meant that they will either have to pay large sums of money upfront or look for other options with short notice. The current pandemic and restrictions to movement may further complicate this.
When students move out of halls after their first year, the vast majority of contracts for private rented accommodation require that they find a guarantor. A guarantor is someone who promises to pay if a tenant fails to do so or if the property is damaged. They must usually be UK-based and have a stable income, with most landlords carrying out credit checks to confirm this. If a tenant cannot find a guarantor, it is common practice for landlords to request six months’ rent in advance or a larger deposit.
Overseas, low-income, and estranged students benefited most from UCL’s rent guarantor scheme and are likely to be disproportionately affected by its suspension. These students often struggle to find suitable guarantors; many either do not have contacts in the UK, their families do not have a stable source of income, or they cannot – for various reasons – rely on their families to help. UCL had previously provided a solution by acting as a guarantor for all students on the condition that they had no outstanding debts to the university (for instance, unpaid tuition fees or library fines) and were planning to live with other UCL students.
The decision to withdraw the rent guarantor scheme was not notified to students, except for a minor change to the university’s accommodation FAQs page. The last section of the page now states that the scheme has been suspended “until further notice” and that UCL “will not be taking any new applications for the academic year 2020/2021”. It attributes the termination of the scheme to the coronavirus pandemic but provides no further explanation.
The updated page also encourages students to look for alternatives to the university’s guarantor scheme, directing them towards private rent guarantors such as Housing Hand and UK Guarantor. These external guarantor schemes are also recognised by landlords, but they come at a price. Housing Hand’s fee, for instance, starts at £42 per month but is likely to be higher for students living in London, which puts students from low-income backgrounds at a disadvantage.
Because the changes made to the accommodation FAQs page were not publicised, most students seem to have remained unaware of the guarantor scheme suspension until a UCLove post pointed it out on June 9. The post has since received significant attention on Facebook and dozens of comments, many of which expressed confusion or outrage at the university’s decision and the short notice it gives students to make new arrangements.
One anonymous Biological Sciences student commented on UCL’s decision: “This is a really sad and disappointing decision from UCL that I cannot believe happened without prior consultation with students”. “Especially for students on scholarships/financial aid/bursaries . . . not having a guarantor will severely complicate our financial situation,” the student explained.
The Disabled Students’ Officer, Zohar Mendzelevski-Steinberg, spoke about the groups of students that might be worst-affected, saying “This is an intersectional issue that is going to disproportionately affected disabled students, Black students, students with caring responsibilities, international and low-income students”. “I understand the financial pressures universities are under but this is not one of the things to cut. Students deserve homes,” Mendzelevski-Steinberg added.
A UCL spokesperson said the university would be monitoring the situation closely and advised students to contact UCL Accommodation if they encounter any issues finding a private guarantor. Mental health support and financial assistance can also be accessed from UCL Student Support and Wellbeing through the askUCL enquiry system.