HM Treasury has today revealed the three fintech services it’s decided to back with £1.4 million to develop their platforms and ultimately help more tenants build up their credit scores and get on to the property ladder.
The cash is the final phase of an initiative called the Rent Recognition Challenge, which was in part a political reaction to a e-petition that gathered over 140,000 signatures and called for rental payments to be included in tenants’ credit histories.
This e-petition was debated in parliament and soon afterwards HM Treasury announced its ‘challenge’ which has spent a total of £2 million helping fund the growth of six fintech firms.
Three of these including the UK’s largest rent recognition platform CreditLadder plus Bud and Rental Step, are the finalists in the challenge. CreditLadder is believed to have received the largest cheque, for £500,000.
Today’s announcement follows scrutiny of each firm’s presentations by a panel of leading figures from the Fintech sector including Al Lukies of Motive Partners; Charlotte Crosswell, CEO of Innovate Finance and Paul Smee, Former Director of Mortgages, UK Finance.
“Our service was the first in the UK to enable tenants to have their rent recognised by a leading credit reference agency and this, coupled with our strong tech development and significant database of tenants, I believe, helped secure today’s approval from the HM Treasury,” says CreditLadder CEO Sheraz Dar (left).
“We are hugely thankful for the HM Treasury’s decision to award us the extra cash which, as a leading FinTech platform, will enable us to help millions of tenants to benefit from their rent payments being reported.”
CreditLadder says it offers its services to thousands of tenants and has nearly 2,000 agency branches on its platform.
“The monthly rent is often the biggest expense that people face,” says John Glen, Economic Secretary to the Treasury (right).
“Yet most lenders are unable to take it into account when working up a credit score.
“Three pioneering apps have found a solution, and we’re giving them the investment and support they need to help Britain’s 11 million renters achieve their dream of owning a home.”