Hybrid lettings agency No Agent is to begin reporting its tenant’s payment histories to partner credit reference agency Experian, and is claiming to be the first agent with national reach to do so.
The London-based online hybrid agency says it wants to help the tenants who live in the properties it manages to improve their chances of getting on the property ladder and create a level playing credit score playing field for both tenants and home owners.
No Agent will be reporting its tenants ‘one-time’ rent payment though Experian’s Rental Exchange initiative, which enables larger agents, landlords and social housing providers to record tenants’ payments in large volumes.
“Rent is usually the largest regular payment in a household and should be the main indicator of creditworthiness,” says No Agent CEO Calum Brannan (pictured, left).
“Yet tenants paying rent regularly don’t see this reflected on their credit scores in the same way homeowners do with their mortgage payments.
“It’s making it even harder for them to get on the ladder and it’s simply not fair. So we are partnering with Experian to change things for Generation Rent.”
Experian’s Rental Exchange system doesn’t require the permission of landlords to pass on their tenants’ payment records to Experian, as it is No Agent who will receiving the rent from the tenant, although it is likely that the tenants will have to give the thumbs-up for the rent payments to be passed on.
“Our landlords are getting an extra assurance that their tenants pay in full and on time,” says Calum.
Several other creditworthiness initiatives have been launched recently including CreditBuilder, an online service that enables agents to copy No Agent’s initiative by reporting tenants’ rental payments on an agent’s behalf. The other main operator in this field, CreditLadder, has been going two years and recently revealed it had processed £10m in rental payment payments.