Credit reference agency Experian has begun adding private tenants’ rent payment history to their credit reports.
The agency said that around 80 per cent of tenants will see a boost to their credit scores thanks to the move, as it improves credit reports for those who pay on time.
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It’s thought that it’ll be adopted by other credit reference agencies in the coming months.
Landlords in favour
The development comes after a survey from the Residential Lettings Association (RLA). Of the 3,000 landlords surveyed, 61 per cent said they support the addition of rental payments to tenants’ credit reports.
Parliament held a debate on the subject last year, following a petition by a private renter that gathered nearly 150,000 signatures.
The RLA believes the addition of rental history will make it possible for landlords to more accurately judge the reliability of tenants during the referencing process.
Access to affordable credit
Meanwhile, Experian says tenants who pay their rent on time will find it easier to secure mortgages and other credit because of the move.
Working in partnership with Experian, CreditLadder is providing the technology to allow tenants to opt in to the scheme, with letting agents and landlords able to offer it to new and existing tenants.
CreditLadder CEO Sheraz Dar said: “As former cabinet minister Justine Greening noted in her speech to parliament, MPs from across the political spectrum want to see rent payments recognised by lenders on a level playing field with mortgage payments, and yesterday’s Experian announcement takes this another step towards reality.
“As the first and largest of the players offering rent recognition, we are proud to play our part in helping responsible tenants gain equal access to affordable credit both now and increasingly so in the future.”