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