It’s been a long running debate, but private tenants can finally benefit from their rent boosting their credit scores.
Credit reference agency Experian is now taking account of the payment habit of private tenants when calculating credit scores. The agency estimates that this change will see 80% of tenants see their credit score increase, making it easier for them to secure mortgages and loans at better rates, as well as making it easier for landlords to get a clearer picture of the tenant’s credit and payment history during a reference check.
The change follows long debates at Westminster about the topic, following the submission of a petition by construction worker Jamie Pogson, which attracted nearly 150,000 signatures supporting the cause. The minimum number of signatures needed for a petition to be debated in parliament is 100,000, so this alone proves the passion people have for this topic.
A subsequent survey of nearly 3,000 landlords on the topic, carried out by the RLA, highlighted that over 605 of landlords supported the change too.
As former cabinet minister Justine Greening noted in her speech to Parliament during Prime Minister’s Questions, MPs from across the political spectrum want to see rent payments recognised by lenders on a level playing field with mortgage payments, and Experian’s announcement takes this another step towards reality. The Bill aims to make it a requirement for credit providers to take into account rental and council tax payment history.
Sheraz Dar, CEO of CreditLadder (who partner with Experian to allow tenants to submit information about rent payments)
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