Landlords back credit boost for reliable tenants
Landlords are calling for rent payments to be included when calculating credit scores for tenants who want to buy their own home.
Nearly two thirds (61 per cent) of 3,000 landlords polled by the Residential Landlords Association (RLA) say they would back such a move.
At the moment, credit rating agencies do not routinely include rent payment history when calculating credit scores.
This means even tenants who have a long history of rent being paid in full and on time find it difficult to access a mortgage.
Including rent payment would also give landlords a more accurate assessment of a prospective tenant’s credit and rent payment history.
The RLA is calling on the Government to work with the industry and include rent payment history as a standard feature of credit score calculations.
RLA chair, Alan Ward, said: “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.”