Credit Scores Should Include Rent Payments, Landlords Insist

Credit Scores Should Include Rent Payments, Landlords Insist

Credit Scores Should Include Rent Payments, Landlords Insist

Rent payments should be included by credit rating agencies when calculating credit scores to support tenants wanting to buy a home of their own, landlords have insisted.

This is the call being made following the Residential Landlords Association’s (RLA) latest survey of almost 3,000 landlords, which found that 61% of investors would support such a move.

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

Including rent payments in tenants’ credit scores would also support landlords, providing them with a more accurate assessment of a prospective renter’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 Chairman of the RLA, Alan Ward, 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.”

Landlords, remember that the best way to ensure that your pocket’s not hit by tenant rent default is to protect your rental income with Rent Guarantee Insurance.

This essential cover makes sure that you still get paid if your tenant falls into rent arrears. Our standalone policy also includes Legal Expenses Cover, which will help you if you are forced to evict a non-paying tenant.

Don’t miss out if your tenant stops paying the rent – Get an instant online quote here: https://www.justlandlords.co.uk/rentguaranteeinsurance

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