Financial giant offers free rent payment reporting service to tenants

Tenants in the private sector are now able to report their rental payments to the big credit score agencies for free following the launch of a new service by ClearScore.

While mortgage payments are recognised on credit reports, rental payments have historically not received the same recognition, putting renters at a disadvantage.

ClearScore says tenants using the service will be able to report their rent payments to all three major credit bureaus – Experian, Equifax and TransUnion – directly through its app or website.

It also says its new service fills a gap in the credit system, although several other property industry platforms including CreditLadder and Canopy have been offering the service for some time.

But ClearScore’s new service is the first to offer rent reporting for free and it says reported payments will be added to the credit scores passed on to mortgage and other lenders, something successive governments and MPs have urged the industry to adopt including 2017’s Creditworthiness Assessment Bill.

This week’s launch coincides with new research which reveals that the average renter has paid almost £60,000 in rent over their lifetime, while one in five say they have paid more than £100,000.

The average renter has paid almost £60,000 in rent over their lifetime

For many, those payments are already comparable to the cost of owning a home, with seven in ten estimating they are paying the same as or more in rent than they would on a mortgage for a suitable home.

Justin Basini (main image), Co-founder and Chief Executive of the ClearScore Group, says: “ClearScore is giving UK renters something that we feel is long overdue: free rent reporting, connected to all three credit bureaus, means that every rent payment finally counts.”

“Completely free and simple to set up in the ClearScore app, this is a service to help millions of renters finally get greater recognition for the financial track record they are already building. It’s an issue that policymakers have been grappling with for almost a decade, and we are delighted to have developed this solution, bringing rent reporting to people across the UK helping them build positive credit history and demonstrate their credit worthiness.”

Significant barriers

Campaigner and NW Cambridgeshire MP Sam Carling, says: “Young people, and others with a thin credit history, face significant barriers in proving to mortgage providers that they’re responsible with their finances, because their monthly rent payments haven’t been factored into the credit reporting system.

“Having been raising awareness of this in Parliament, I am delighted that ClearScore is launching their Rent Reporting service. While long-term renting works for some people, most do want to get onto the housing ladder – and this will make a huge difference by helping people build up their credit score so they can access the lending which can make that a reality.”

Another campaigner on the issue, Justine Greening, Chair of The Purpose Coalition and Former Secretary of State for Education, adds:

“Opportunity should be determined by talent and hard work, not by the barriers built into our systems. Back in 2018, I championed the Creditworthiness Assessment Bill because I believed it was fundamentally unfair that millions of renters could pay their rent reliably every month without that financial responsibility being properly recognised.”

“Eight years on, it is fantastic to see ClearScore develop a practical, free solution to this longstanding issue. By using technology to ensure rental payments are reflected in people’s credit histories, ClearScore is helping to break down a barrier that has held too many people back from accessing affordable credit and taking the next step towards homeownership.”

Benefits

Commenting on the launch Sheraz Dar, CEO of CreditLaddder, says: “We’re pleased to see greater attention being given to rent reporting and the benefits it can deliver for renters.

“CreditLadder has been championing this cause for more than a decade because we’ve long believed rent should count when assessing financial reliability.

“As awareness grows, the quality of the service behind the product becomes increasingly important, and we’re proud that our commitment to renters is reflected in our 4.8-star Trustpilot rating. Furthermore, we’re giving more back to our users starting with free cashback to all CreditLadder customers which goes live this week”.