Landlords are urged to sign up for a scheme that helps tenants build a credit rating every time they pay rent on time.
Credit bureau Experian is backing the Rental Exchange with a drive to recruit letting agents and buy to let landlords.
The exchange tracks rent payments in the same way banks and building societies disclose mortgage payment data to credit rating agencies.
Potentially, Rental Exchange helps tenants who pay their rent on time access financial services on better terms, as their personal rating improves with every payment.
Landlords who belong to the exchange can also view rent payment histories of tenants applying to live in a home.
The Rental Exchange has run with social housing tenants for some time, but Experian want to expand the service into the private rental sector as well.
“Despite making regular payments for their housing, private renters don’t see this reflected on their credit report in the same way mortgage payers do. Experian is the only credit reference to incorporate rental payment data into consumer credit reports, enabling tenants to build credit history by paying rent responsibly,” said an Experian spokesman.
The firm explained that research showed six out of 10 tenants were more likely to hand over their rent on time if the payment is tracked by a credit rating agency.
Landlords or letting agents with more than 100 rental properties can post rent information directly into the Rental Exchange.
For smaller portfolios, landlords can urge their tenants to join the scheme via an online portal called Credit Ladder.
The service is free and landlords.
Credit Ladder collects the payment for the landlord, updates the tenant’s credit rating and passes the payment on.
The Rental Exchange service goes live for finance providers to view from the end of 2016.
