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.

Landlords call on government to help improve benefit confidence

“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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