Coalition of businesses and charities demand home ownership reform for millions of renters

A coalition of businesses and charities have outlined a series of demands for urgent reform to unlock home ownership for millions of renters.

Following a summit in London on 29th October, the group have sent a joint letter to the Chancellor ahead of the Autumn Budget, urging reforms that would ensure renters’ payment history is properly reflected in credit files.

The intervention comes as the Government prepares to publish the UK’s first-ever National Financial Inclusion Strategy and is aiming to build 1.5 million new homes during its term. Campaigners warn that without action to address the credit access crisis, this ambition risks leaving millions behind: unable to buy, not because they can’t afford it, but because the system doesn’t recognise their financial track record.

The open letter – signed by over 15 organisations including Evlo, The Money Charity, ClearScore, the Consumer Credit Trade Association, and the Finance & Leasing Association – calls for the Government to lead a coordinated national approach that ensures rental payment data is consistently and securely shared with credit reference agencies.

With 5.4 million households now privately renting across Great Britain, the campaigners say the current system unfairly penalises renters, locking them out of financial opportunities simply because their largest monthly expense too often isn’t recognised.

The campaign was initiated by Jono Gillespie, CEO of Evlo, he said “Every day, we meet people who’ve never missed a rent payment but are locked out of affordable credit. It’s a clear injustice that needs to be fixed.

Increasing rental payment data sharing would give people a fairer shot at building their financial future and open the door to opportunities that are currently out of reach for millions. It’s a simple change that could have a transformative impact.”

While mortgage payments routinely contribute to credit files, rent payments – often higher and more consistent – do not. This gap is contributing to a surge in financial exclusion. Today, 20.2 million adults are financially underserved, a 50% increase since 2016. One in three adults cannot access mainstream credit, and over 3 million have turned to illegal lenders in the past three years.

Sam Carling MP said “My constituency has a high number of renters – especially young people – who are working hard
to save for a first home. But many find that their rent, which often makes up a big chunk of their monthly income, isn’t recognised when they apply for mortgages or other types of credit. Thin credit files are stopping people who already manage rent payments from accessing the support they need to move forward. This is a simple, common-sense change that would make a real difference – helping people demonstrate their financial responsibility and, in many cases, take their first step onto the property ladder.”

“PwC analysis has shown that one in three adults in the UK struggle to access mainstream credit, largely due to poor or just thin credit files. That is causing a huge financial inclusion problem, especially for young people trying to get a mortgage. Will the Minister meet me to discuss ways we can improve that situation in collaboration with industry, for example, through the reporting of rent payments to credit reference agencies?”

With the Treasury reviewing the 50-year-old Consumer Credit Act, and the Government soon to publish the UK’s first-ever National Financial Inclusion Strategy, campaigners say this is a rare opportunity to fix a long-standing gap in the system.

They are calling for the government to lead a coordinated national approach that ensures rental payment data is consistently and securely shared with credit reference agencies. This would include empowering renters by giving them the right to opt-in to have their rental payments added to their credit files. Supporting landlords and letting agents with clear guidance and incentives to participate in rental data reporting schemes.

Shiona Crichton, CEO and Director of Moneyline, said “The number of renters in the UK is growing, and we need rental payments to be reported to and included in credit reporting to bring financial equality between homeowners and renters.”

The letter was signed by: Evlo, Aspire Money, Believe Money Group, Borderway Finance, ClearScore, Comparitec, Consumer Credit Trade Association, CreditLadder, Everything Financial, Finance and Leasing Association, Infact, Infinian, Loans Warehouse, Loan Tube, Moneyline, Norton Finance, Quint Group, and The Money Charity.