Include Rent Payments in Credit Scores

Include Rent Payments in Credit Scores

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Rent payments should be included when calculating credit scores to support tenants wanting to buy a home of their own.

Our research based on a survey of almost 3,000 landlords, has found that 61% of landlords would support action to make rent payments to support credit scores.

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.

The RLA’s 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.

“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.”

Read the RLA’s Senior Researcher, Tom Simcock’s blog post on the findings here.

Read the full report from the RLA’s Private renting Evidence, Analysis and Research Lab (PEARL) here.

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RLA PEARL

The Residential Landlords Association’s (RLA) Private renting Evidence, Analysis & Research Lab (PEARL) is a research-based policy exchange for the private rented sector. We provide analysis and research on the economic, social, and political issues facing the private rented sector (PRS). Through this the RLA aims to inform, develop and promote policies that help to make renting better for all. We provide high-quality research and through our reports, briefings, and events, the RLA’s PEARL provides the opportunity for evidence led policy making in the PRS. The RLA aims to make an important contribution to the policies that affect the PRS. We believe it is important that policy makers consider the evidence and the potential consequences in their decision making. We seek to influence decision makers in order to translate our research findings into an improved renting experience for landlords and tenants.