Credit checks are a vital step in the letting process for landlords, and thanks to a new legislation this stage of the process is set to get more teeth, benefitting everyone, not least the tenant!
The Creditworthiness Assessment Bill is calling for tenants to be afforded the same benefits as people paying mortgages with regards to their credit rating.
Currently, timely rent payments to not contribute to an individual’s credit worthiness in the way that a mortgage payment does, the Bill hopes to change that.
It has received backing from credit organisations such as Experian, and it’s looking positive at Westminster too. The Bill, introduced by Big Issue founder Lord Bird, received widespread all-party support in the House of Lords last week when it sailed through it’s Committee Stage, where all amendments were withdrawn.
The proposed new legislation had its First Reading last summer, and a Second Reading in November. It will move to the Commons later this year.
If there are any unintended consequences then it is our duty to look at legislation and not simply write-off 80 per cent of people in order to protect 20 when the best thing you can do to protect them is to find out who they are, get very close to them and embrace them. Those are the people I know, the people I work with and the people I come from and there is absolutely no way I would ever come close to grassing them up.Lord Bird
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