RENTAL payments will appear on credit reports for the first time from the end of this year, the credit reference agency Experian revealed.
Tenants who pay rent late will get a black mark, hitting their chances of securing a mortgage or credit card.
Experian expects to include 600,000 rental records by year-end, starting with social housing and expanding to all private rentals. Lenders will have access to the information next year.
Missed payments will damage a credit score, but a history of regular on-time payments could improve it.
A report last week by Experian claimed 93% of social housing tenants will see a boost in their scores as many lack a credit history.
Mark Harris of the broker SPF Private Clients said: “This is a welcome development. Applicants are often rejected for mortgages because of a lack of credit. Showing rent payments would demonstrate a record of meeting financial obligations”.
So…good news for first time buyers and good news for landlords - tenants will be extra keen to make payments on time if they are looking to apply for a mortgage in the future.