TransUnion and Let Alliance have announced that they have completed a two-year strategic project that has resulted in redefining the way that tenant referencing works in the UK, with references now returned the same day. Let Alliance has developed the affordability algorithms in partnership with TransUnion and through the knowledge of managing a Rent Guarantee Portfolio that protects in excess of £500 million of annual rent.
Until now tenant referencing across the lettings industry has relied upon companies accessing publicly available credit information only but Let Alliance has developed the process that allows consumers to give Let Alliance – when acting for professional letting agents and their potential landlords –- access to their full credit file.
This means that for the first time in the UK, Let Alliance will complete tenant references based on the full credit information, with the same level of detail that is used by banks, building societies, and credit card companies. Accessing the data and the initial affordability assessment will be completed in real time.
The combination of analysing the full credit file with the integration of Open Banking and the proprietary Let Alliance affordability algorithms means that the majority of tenant references will be completed within 24 hours. The process works in the same way that banks, building societies and credit card companies make decisions. It is much faster than the historic rental vetting process, offering a much smoother application and allowing tenants to move into their new homes much more quickly. There will be no need for tenants to upload, scan or email documents, as the crucial information required will be accessed through Open Banking technology.
Kelli Fielding, Managing Director of consumer markets at TransUnion said “Having worked with Let Alliance for over eight years, we’re delighted to have supported them in this pioneering initiative that revolutionises their rental vetting process. Consumers can now give their consent to share their full credit file with Let Alliance when they are conducting the checks, cutting timescales from days, or sometimes weeks, to a same day turnaround and making the consumer journey much smoother. Our Open Banking technology which is built into this process provides a detailed understanding of the potential tenant’s financial status – spanning income verification, risk and affordability – helping letting agents to make an informed assessment whilst also delivering an improved customer experience.”
Andy Halstead, CEO at Let Alliance said “For many years now it has been a vison of mine to give letting agents access to tenant referencing using the same data that banks and credit card companies use. Through our partnership with TransUnion we have found a solution whereby consumers can quickly and easily share their data with Let Alliance, and it is a complete game changer. We are no longer restricted to limited information; we now lead the way and our leading technology has been the key to our success. It’s also a great example of how consumers can take charge of their own data to help them achieve their goals; in this case helping them secure the rental property they’re after with a quick and easy process.”