Include Rent Payments in Credit Scores

Rent payments should be included when calculating credit scores to support tenants wanting to buy a home of their own. The Residential Landlords Association (RLA) found that 61 per cent of landlords would support such a move. At present, credit rating agencies do not routinely include rent payment history when calculating credit scores. This means a tenant can find it difficult to access a mortgage, even if they have a long history of rent being paid in full and on time. Including rent payment in this way would also support landlords, providing them with a more accurate assessment of a prospective tenant’s credit and rent payment history. Read more on the RLA website.

Credit Agency Issues Warning Over Two Year Benefit Freeze

A major credit agency has warned that a proposed benefits freeze could lead to ‘downward pressure’ on rents and make it ‘increasingly difficult’ for housing associations to manage arrears. Standard and Poors (S&P) released its assessment of the major risks facing the sector yesterday, expressing limited concern about other areas of welfare reform. The credit agency- which provides ratings for 15 social landlords- warned that one of the biggest risks to the sector was providers diversifying into commercial activity they do not fully understand. Download the report from the S&P website.