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Paying rent ‘in full and on time’ should boost a tenant’s credit score, says RLA


Published: 23/08/2017   Last Updated: 20/06/2019 15:42:23   Tags: RLA, Credit Score, Landlord Today, Rent, City Living London

Private tenants who pay their rent on time should see their credit rating boosted in order to make it easier for them to gain a foot on the housing ladder.
That is the advice being given following a survey of almost 3,000 buy-to-let landlords carried out by the Residential Landlords Association (RLA), which found that 61% of landlords would support such a move.
 Credit rating agencies do not currently routinely include rental payment history when calculating credit scores. This means a tenant can find it difficult to access a mortgage, even if they have a long history of rent being paid in full and on time.
The RLA believes that including rental payment history in this way will also allow landlords to make a more accurate assessment of a prospective tenant’s suitability, and are subsequently calling on the government to work with the industry and recommend that it is included as a standard feature when calculating credit scores.
The RLA’s chairman, Alan Ward, commented: “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.” Source: Landlord Today