Securing permission for an overseas employee to work in the UK is often viewed as the biggest hurdle in international recruitment. Yet for a growing number of businesses, the real difficulties only become apparent once their new hire arrives. Finding somewhere to rent has become an unexpected obstacle that is slowing relocations, delaying new starters and creating extra work for employers trying to fill critical vacancies.

Overseas hiring remains essential for tackling skills shortages

Despite changes to immigration policy, international recruitment continues to play a significant role in helping employers overcome persistent labour shortages.

Government figures show there were around 734,000 job vacancies across the UK at the end of 2025. During the same period, the number of payrolled non-EU employees increased by 6% compared with the previous year, reinforcing the importance of overseas workers across a wide range of industries.

For businesses investing considerable resources into attracting skilled professionals from abroad, obtaining a visa is no longer the final milestone.

Helping those employees establish themselves once they arrive is becoming just as important to a successful recruitment strategy.

Renting a home has become one of the biggest relocation barriers

Starting a new life in another country comes with obvious challenges, but many international workers are surprised to discover that securing accommodation can be one of the hardest parts of the process.

Although they may have permanent employment, a competitive income and the legal right to work, they often have no UK credit history, no previous rental record and no local guarantor.

For landlords relying on traditional referencing, this lack of UK financial history can make otherwise strong applicants appear higher risk.

The result is that many overseas employees spend valuable time searching for housing after arriving in Britain, delaying the point at which they can fully settle into both their new home and workplace.

Relocation support is becoming more comprehensive

Employer support for international recruits has traditionally centred on sponsorship, visa applications, travel arrangements and short-term accommodation.

Increasingly, organisations are extending that support to include guidance through the UK rental market.

This is especially important in areas where rental demand remains high and competition for available properties is intense.

The introduction of the Renters’ Rights Act has also influenced the way landlords assess prospective tenants. While the legislation strengthens tenant protections, it limits the ability to request substantial rent payments upfront. As a result, many overseas applicants are no longer able to improve their chances by offering several months’ rent in advance.

Instead, landlords are placing greater importance on affordability, references and guarantor arrangements before approving applications.

Marco Laurence, founder at professional rent guarantor service Rentmigo, commented:

“We often speak to international workers who have done everything right. They’ve secured a good job in the UK, got a visa and are ready to start work, but they quickly find out that renting a property can be one of the hardest parts of moving to the UK.

“With the new Renters’ Rights Act preventing landlords from asking for big upfront rent payments, they now need new ways to manage their risk. Many international renters have excellent salaries, but no UK credit history or someone locally who can act as a guarantor. For many landlords, that’s enough to refuse the application.

“The knock-on effect is that businesses can end up waiting weeks for new employees to find somewhere to live, delaying start dates and creating unnecessary disruption. As more employers look overseas to fill skills shortages, helping international recruits overcome those rental barriers will become an increasingly important part of the relocation process.”

Housing issues can have a wider business impact

Difficulty finding accommodation affects more than the individual employee.

When new recruits cannot secure housing quickly, businesses may face postponed start dates, project delays and additional demands on HR teams that are left helping employees navigate an unfamiliar rental market.

As competition for skilled international professionals continues to grow, the overall relocation experience is becoming an increasingly important factor when candidates choose between employers.

Companies that make the transition into UK life smoother are often better placed to attract and retain talented workers from overseas.

Looking to the future

Businesses have refined their international recruitment processes over many years.

The next stage of that evolution may involve removing the practical barriers employees face after arriving in the UK, rather than focusing solely on immigration requirements.

Winning global talent is only the beginning. Helping those employees settle successfully into everyday life could become one of the defining factors in successful international recruitment.

New data reveals working capital loans have almost doubled in two years and for the first time in over a year, start-ups are borrowing more than established businesses

New data from Purbeck Insurance Services, the UK’s only provider of personal guarantee insurance for SME owners, reveals that applications for personal guarantee-backed finance rose 63% year-on-year in Q2 2026, reflecting sustained and growing demand for borrowing among small and medium-sized businesses. Behind every loan application is a director who has personally guaranteed a business loan and the scale of that exposure is growing as Purbeck’s data shows the average loan value exceeded £300,000 for the second consecutive quarter.

Highlights

• 63% year-on-year rise in Personal Guarantee Insurance applications in Q2 2026
• Average loan value £317,000 — above £300,000 for the second consecutive quarter
• Start-ups now borrowing more than established businesses — average start-up loan reaches £345,000, the first time in a year
• Working capital accounts for 36.2% of all borrowing — more than one in three applications
• Working capital loans have almost doubled in two years 
• Growth-focused borrowing makes up 20% of all applications despite economic headwinds
• Asset purchase, development and acquisition together account for nearly one in four applications

Working capital crisis driving borrowing surge

Working capital — the day-to-day funding needed to keep a business trading — remains the single biggest driver of personal guarantee-backed borrowing, accounting for 36.2% of all Q2 2026 applications and the volume of working capital loans has almost doubled in just two years. The trend points directly to the cashflow pressure bearing down on UK SMEs: 40% of trading businesses reported rising input costs in April 2026 — the highest proportion since December 2022, according to the ONS Business Insights and Conditions Survey.

The picture is not, however, one of businesses simply firefighting. Finance for investment in growth initiatives accounted for 20% of all applications — the second most common reason for borrowing. Businesses are also seeking finance for asset purchase, development and acquisition, which together account for nearly one in four of all applications. The breadth of borrowing purposes suggests that SME owners are balancing short-term cashflow pressures with continued longer-term investment, even in a difficult environment.

ENDS

SAVVY Collective has launched a refreshed brand alongside an expanded business proposition that brings operational management, consultancy, education, events and investment together in one business. The move reinforces the company’s commitment to helping owner-managed hotels, leisure operators and lifestyle destinations achieve sustainable growth without compromising the identity that makes each business unique.

Established by award-winning hotelier Steven Hesketh, the collective has been built on practical hospitality experience rather than consultancy theory. Every service has been shaped by the challenges of running independent businesses and is designed to deliver measurable commercial results.

“We want SAVVY Collective to become the trusted choice for owners who need support without sacrificing what makes their business unique,” said Hesketh. “The best partnerships are built on practical support, shared ambition and genuine collaboration. We have seen first-hand what happens when independent operators are left without the right support. Good businesses struggle, great teams leave, and the character that made those places special gets lost. That is exactly what SAVVY exists to prevent.”

Built by operators who understand independent hospitality

SAVVY’s approach is informed by years of managing family-owned hotels and hospitality businesses. That first-hand experience has provided valuable insight into the financial pressures, staffing issues and local relationships that shape independent operations every day.

Family remains central to the organisation. Hesketh’s wife and three children are actively involved in the business, reflecting the values of trust, collaboration and long-term commitment that underpin SAVVY’s work with clients.

The collective is guided by principles that prioritise commercial thinking, strong people leadership, family experience, community engagement, collaborative working, adaptability and value-focused decision making.

To support continued growth, Marcus Magee has joined as Operations Director, while Stephen Miles has been appointed Development Director.

SAVVY focuses on delivering practical improvements rather than reports that remain on a shelf. The team works alongside owners on operational transformation, revenue growth, leadership development, financial support, asset optimisation, business repositioning, rebranding initiatives, community engagement and sustainable performance.

Its client base includes hospitality businesses with up to approximately 100 rooms, units or equivalent capacity across hotels, restaurants, bars, attractions, social venues, events and lifestyle destinations.

Current projects include The Chester Townhouse, The Richmond Hotel, The Annex, The Old Registry, Hotel Wrexham, The Savvy Fox, Queens Square Social, DevaFest, and the Cheshire and North Wales Food and Drink Festival.

Education also forms an important part of the business. Bee Our Guest, the children’s book created by Hesketh for readers aged seven to ten, introduces hospitality through engaging storytelling. Following its success as an Amazon bestseller, the book has also been translated into Welsh to encourage greater awareness of the sector across Wales and neighbouring regions.

Five specialist service divisions

SAVVY’s offering is delivered through five dedicated areas of expertise.

SAVVY Management provides independent hotel owners with operational support covering hotel representation, commercial performance, people development and financial management, while allowing owners to remain firmly in control.

SAVVY Consultancy works with businesses through operational reviews, strategic advisory projects, repositioning programmes and pre-opening support tailored to individual requirements.

SAVVY Education supports career development through industry-led training, the Bee Our Guest initiative and The Art of Hospitality conference series.

SAVVY Investment offers flexible financial solutions including bridge funding, refinancing advice, cash flow support and asset protection. Recent investments include award-winning low-alcohol drinks producer Chance Clean Cider.

SAVVY Events develops hospitality-focused experiences that generate commercial returns while strengthening local communities. The portfolio includes DevaFest, the annual family music festival at Cholmondeley Castle attracting around 30,000 visitors each August, together with the Cheshire and North Wales Food and Drink Festival.

Positioned for changing market conditions

The refreshed business launches as many independent hospitality operators face a rapidly evolving market. Increasing operating costs, recruitment challenges and greater business complexity have encouraged many owners to seek specialist expertise without giving up control of their businesses.

Recent market data illustrates the strength of the sector. Cushman & Wakefield reports that UK hotel transactions reached £1.6 billion during the first quarter of 2026, representing more than double the volume recorded during the same period in 2025 and standing 53 per cent above the five-year average. Private investors and owner-operators accounted for 89 per cent of total buyer activity.

Demand continues to exceed new supply. Hotel demand across the UK increased by 0.9 per cent year-on-year during the opening quarter of 2026, while available supply grew by only 0.7 per cent. Analysts expect that imbalance to continue throughout the year.

The North West has emerged as one of the country’s strongest performing regions. Manchester and Liverpool both entered the Colliers UK Hotel Development Index top ten for the first time, benefiting from healthy RevPAR growth and attractive development costs. Colliers believes the region’s rise reflects a long-term investment trend. Chester also recorded a two per cent increase in licensed hospitality venues, making it the strongest-performing city in the North West and second nationally after Newcastle.

“Our aim is simple, but bold,” said Hesketh. “We want to help hospitality businesses create stronger teams, deliver outstanding guest experiences, build resilient operations and achieve lasting profitability.”