Credit reference agency set to compile rent payment blacklist for landlords

Published 21st Mar 2012

A credit reference agency will soon be collecting information about tenants who miss rent payments.

Landlords and letting agents are able to sign up to a new Rental Exchange, run by agency Experian, which allows them to see if a prospective tenant has paid their rent on time.

Tenants can then opt to have this information shared with banks if they think it will improve their chances of getting a mortgage or credit card.

A frequent problem for tenants buying their first home is that they lack a credit record as banks like to see a good history of repaying debts.

Credit reference agencies collect information about people’s mortgage, credit card, loan and hire purchase payments, but this is the first time rent payment details will be held by an agency.

There are currently 3.6 million households renting privately.

Experian says the service will benefit landlords and tenants. But experts are urging landlords to spell out when they are using the service, and not bury it in the terms of tenancy agreements.

Also, it means landlords and letting agents will have a record of missed rent payments likely to go back six years.

If a tenant does miss a payment, this may affect their chances of getting another rental property in the future.

Source: ' ThisIsMoney '

View All Latest Articles