Introduction: A New Era for Rent Payments and Credit Ratings

Do you always pay your rent on time? If so, your on-time payments could soon improve your credit rating, just like homeowners benefit from paying their mortgage. The Creditworthiness Assessment Bill, currently going through Parliament, aims to make this a reality. The Bill will require lenders to consider rental and council tax payment history when assessing creditworthiness. If passed, this law could take effect in 2019.

Enhancing Credit Visibility: Why Rent Payments Should Be Part of Your Credit Report

At present, timely rent payments aren’t reflected in most people's credit reports, but that’s set to change. The Bill, proposed by Big Issue founder Lord Bird, has gained support from both parties in the House of Commons and passed its second reading in October. This change will benefit tenants and landlords alike. A survey by the Residential Landlords Association shows that 61% of landlords back the proposal, as it would allow for a more accurate assessment of a tenant’s creditworthiness.

The Impact of Rent Payments on Tenancy and Credit Access

This legislative change is long overdue. With rental or mortgage payments being the largest outgoing expense for many UK households, it’s only fair that tenants’ rent payments are considered in credit assessments. Around 5.4 million UK households rent, and this Bill, once enacted, will allow tenants to demonstrate their 'rent worthiness,' providing fairer access to affordable credit, which could also help prevent people from falling into high-cost credit traps.

he Importance of Tenant Trustworthiness in the Rental Market

A recent survey by Your Move, which polled 1,071 landlords and tenants, found that trustworthiness is considered the most important quality in tenants. About 26% of landlords rated tenants who pay on time as the top consideration. This highlights the growing value of rent payments in establishing trust between tenants and landlords.

How Rent Worthiness Benefits Both Tenants and Landlords

With the upcoming legislative changes, both tenants and landlords stand to gain. For tenants, proving rent worthiness could make it easier to secure rental properties and access better credit deals. For landlords, incorporating rent payments into credit ratings means a more reliable way to assess prospective tenants’ creditworthiness and rent history.

The Role of PlanetRent in Supporting Rent-Worthiness Data

PlanetRent, developed by Ringley Group, will soon provide access to rent-worthiness data to help both tenants and landlords. This platform offers automated lettings services, including paperless deals, advertising, compliance management, and protection from fines, making it easier for landlords to manage properties while ensuring tenants are accurately assessed. To learn more, visit PlanetRent.co.uk.