It has been confirmed that parliament will debate the idea of taking private rental payments into account when people apply for a mortgage by having their rental payments included on their credit file.
Generally, credit rating agencies do not routinely include rental payments when calculating credit scores, meaning that a tenant who has a long history of full, promptly paid rental payments may still find it difficult to access a mortgage.
The debate will take place following a petition on the issue raised by Jamie Pogson, a construction worker from Plymouth, which attracted over 147,300 signatures - significantly more than the 100,000 required to force a debate in parliament.
The debate is supported by data from the Residential Landlords Association (RLA). Their survey revealed that 61% of landlords would support rental payments being added to tenants’ credit histories in the same way mortgage payments are.
The study of almost 3,000 private landlords suggests that would also make it easier for landlords to make a more accurate assessment of a prospective tenant’s credit and rent payment history.
Alan Ward, the 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.”