Calls for rent payments to be included in credit records

Ryan Fowler

August 17, 2017

Landlords are calling for rent payments to be included when calculating credit scores as a way of supporting tenants when they want to buy their own home. 

A survey of almost 3,000 landlords carried out by the Residential Landlords Association (RLA) which found that 61% of landlords would support such a move.

RLA chairman Alan Ward said: “With many tenants wanting to buy a house of their own, it is absurd rent payment is not routinely included when undertaking credit checks for mortgage applications.

Graduates spend up to 73% of salary on London rent

“Moving to such a scheme would help not just tenants, but also landlords by giving them a clearer sense of whether a prospective tenant has historically paid their rent in full and on time.”

At present, credit rating agencies do not routinely include rent payment history when calculating credit scores. This means a tenant can find it difficult to access a mortgage, even if they have a long history of rent being paid in full and on time.

Including rent payment in this way would also support landlords, providing them with a more accurate assessment of a prospective tenant’s credit and rent payment history.

The RLA is writing to the government calling on it to work with the industry to include rent payment history as a standard feature when calculating credit scores.

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