The Landlords Union, however says “the practicalities of this are very difficult because a tenancy agreement is not considered a consumer loan meaning there is currently no authority to collect this information, who would collect it and how can you be sure it is accurate.”
The RLA conducted a survey of 3000 Landlords showing 61% would be in favour of rental payments being included in a credit score. This would obviously assist landlords for any reference assessment in taking on a new tenant. The RLA is writing to the government requesting cooperation with the industry to consider how rental payment history could be included when calculating credit scores.
Alan Ward, RLA’s Chairman, 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.”