New rent reporting system that links tenants’ rental payments with their credit report

New rent reporting system that links tenants’ rental payments with their credit report

9:21 AM, 17th January 2018, About 6 years ago 17

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A new proptech platform has launched today that links tenants’ rental payments with their Experian credit report and provides a full rent reporting service for letting agents and landlords.

The Credit Builder platform is designed to help tenants improve their credit history by building up a validated rental record which they can share with future landlords and financial institutions, such as mortgage providers and other lenders.

Furthermore, by encouraging tenants to pay their rent on time Credit Builder helps to reduce rental arrears for agents and landlords, while also generating mortgage enquires from tenants that are ready to buy.

The new Credit Builder software is fully integrated with Experian’s Rental Exchange and provides agents with the ability to run a comprehensive rent reporting service for all of their tenancies.

The launch of Credit Builder follows a petition which gathered around 150,000 signatures calling for rental payments to be taken into consideration when deciding if someone can afford a mortgage.

With Credit Builder tenants will consent to the use of the rent reporting service as a condition of their tenancy agreement. Their details will then be imported into the Credit Builder platform and each subsequent rental payment they make will be automatically reconciled and reported to Experian.

Tenants wanting to review their rental record and connect with Experian to check their credit report will be able to do so via the Credit Builder app, which will also provide access to savings and loan offers.

One Nottingham-based estate agent, Walton and Allen, has already signed-up to Credit Builder and has no rental arrears among those tenants using the service compared to an average of 7% for all tenants.

Our own recommended Letting Agents, who only charge a 5% fee for full letting and management, also agreed to sign up for this service today.

Henry Yates, founder and CEO of Credit Builder, says: “The groundswell of opinion that tenants’ rental payments should count towards their credit report is beginning to drive real change in the industry. Many renters are understandably keen for this to happen as they view it as good opportunity to enhance their credit score and improve their chances of being approved for a mortgage. With this in mind agents should consider offering a rent reporting service as this is likely to become an important consideration for new and existing tenants, as well as landlords.

“Credit Builder is a truly innovative platform that will ensure that Lord John Bird’s vision for a fairer rental market becomes a reality. The system will benefit millions of renters in the UK while also providing a valuable proposition for agents by enhancing the service they provide to tenants and landlords.”

Mark Batty, director of Walton and Allen estate agents, says: “Credit Builder provides much needed support for tenants that want to bridge the gap between renting and owning their own home. Credit Builder helps renters to enhance their credit score and to demonstrate to lenders their eligibility for a mortgage. The benefit to landlords is proven by the fact that all of our tenants using the Credit Builder platform have paid their rent on time and we no longer spend time chasing late payers. Both our tenants and landlords love the fact that we offer the service and it has provided a real differentiator for us among our competitors.”


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Comments

Henry Yates

10:39 AM, 18th January 2018, About 6 years ago

Reply to the comment left by Mark Alexander at 18/01/2018 - 10:34
Brilliant, yes we are in touch.
Great, I'll email you. Henry

0:10 AM, 19th January 2018, About 6 years ago

When the first scheme set up by the Big Issue and Experian was announced it was voluntary opt-in. Now it will be a condition of the tenancy. See how quick that changed?

Ultimately this is about control and LL are a cog in the wheel obediently informing on their customers.

It's one thing for a debtor to be refused a new credit card because of a few late payments -seems reasonable. But now a few black marks means being refused a home.

T loses his right under justified circumstances to withold rent when L is not meeting his obligations because to do so will be punished with bad credit.

We now are living in a 'grass culture' where citizens inform on one another rather than resolving their differences between themselves with honour.

T can claim a windfall if he informs on L for making an admin error e.g. deposit.

Your energy company grasses you to CRAs as a thank you for your continued custom and now so does your landlord. L is now also expected to inform on supsected illegal immigrants as a proxy border guard.

Where will it end?

I do not expect my criticisms to be well received here but please look at the bigger picture about the type of society you want to live in. We all play a part.

The real issue is that L's rights to collect rent and remove bad Ts are not adequate. So, schemes like this are marketed to mitigate the risks. It is a sticking plaster and not the answer.

There needs to be a fit for purpose system to uphold rights of both L and T, not a system for 'tell tales'.

Gary Dully

11:51 AM, 21st January 2018, About 6 years ago

Reply to the comment left by Joel Davis at 19/01/2018 - 00:10
Joel,
There are no circumstances that should allow a tenant to withhold rent, unless done through the correct channels, which is the civil procedure rules for disrepair and the local council.

The number of tenants that rationalise breach of contract, by denying their landlords due process is simply out of control.

Last year I wrote off over £23,000 of bad debt.

Do you know how many properties could have been repaired with that sort of money?

Those tenants that paid on time have subsided rent dodging scum bags, who will use any excuse to avoid paying and they should at least be rewarded with an improved credit rating.

What should be addressed is how an evicted tenant gets away with no credit score damage if it was done through PCOL and you don’t use a bailiff.

It’s an absolute disgrace and farce.

disgruntled landlord

21:31 PM, 21st January 2018, About 6 years ago

A poor credit score is not enough, private landlords need similar rights to commercial landlords for evicting tenant for non payment of rent. Commercial tenants enjoy enough safeguards in most other situations bar non payment of rent. The rules should be similar to commercial forfeiture for non payment with a longer period to allow genuine tenants to sort out their affairs if they run into difficulty. The ones who simply refuse to pay or get into huge arrears would be forced out alot sooner instead of enjoying months of rent free accommodation....

Rob Thomas

12:17 PM, 22nd January 2018, About 6 years ago

Reply to the comment left by Henry Yates at 18/01/2018 - 10:30
Hi Henry
Many thanks for your reply.
My point was that I doubt many overseas tenants would be bothered about building up a positive credit rating in the UK unless they planned to stay permanently. But I could be wrong.
But it depends on who pays. Can you let us know who pays?

Mark Alexander - Founder of Property118

12:26 PM, 22nd January 2018, About 6 years ago

Reply to the comment left by Rob Thomas at 22/01/2018 - 12:17
Hi Rob

I understand that it is the agent/landlord who pays, but that it isn't at all expensive.

0:09 AM, 23rd January 2018, About 6 years ago

Thanks for the reply Gary. The reason you lost £23K is because there is no practical way to get your money off them by force. The system is so useless that paying rent in this country is effectively optional.

I am astonished that any tenant ever bothers to pay their rent when in practice they could all live for free.

Most good tenants pay because they feel morally obliged to. If Ts only paid what they could be forced to pay, LL would go bankrupt.

LL rely on honesty, goodwill and honour of the T more than they might admit.

Credit reporting is a tool to force payment by threat of bad credit and will lower the level of goodwill Ts feel LL deserve.

It is creepy, manipulative and shameful to snitch on your customers. If that is how LL treat their customers then that is how they will be percieved by them.

In a battle of who can enforce their rights, T will win hands down. So LL should take care not to make T feel he is paying because he 'has to' rather than paying because he should.

There is no doubt this is all because of a few bad apples. It is not fair on everyone else who will have one more thing to be stressed about but it will sadly become standard practice.

I just wonder what happended to our culture in this country when in the past it was shameful to be a grass and now it is normal, encouraged and the standard way to do business!

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