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.”
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