Rent Payment in Credit Scores given thumbs up by RLA
Today 17/08/2017, the Residential Landlords Association RLA published a piece on their website citing their landlord survey. They surveyed nearly 3,000 landlords and found that 61 per cent of landlords would support inclusion of rent payment history in credit scores. This would help tenants that pay on time to improve their credit scores, gain access to a wider range of lower cost financial services/products and hence find it easier to get a mortgage. Viewed alongside the petition to "Make paying rent enough proof that you are able meet mortgage repayments" which garnered over 140 thousand signatures, 2017 is quickly becoming the year that the sharing of rental payment history goes mainstream.
The RLA reported that they are calling on the Government to work with industry to make rent payment history a standard feature when calculating credit scores. In a quote on the RLA website their Chairman says: “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.”
We could not agree more. As we said in our blog back in July when we reported on the Creditworthiness Assessment Bill "Here at PAID & CO, rental payment history is not our sole purpose but we deeply believe in the fairness of it. A tenant’s rental payment history should be considered as an essential part of their credit data, helping to level up that deeply uneven playing field."
If you want your Letting Agency to share data with credit reference agencies the easiest route is to sign up with PAID & CO. We collect rent on your behalf by Direct Debit and share payment history with the credit bureaus each month. To find out how watch our videos or get in touch with us here.