New rent reporting system unveiled

New rent reporting system unveiled

A new platform has launched today that links tenants’ rental payments with their Experian credit report and provides a rent reporting service for letting agents and landlords.

The Credit Builder platform is designed to help tenants improve their credit history by building up a validated rental record which they can share with future landlords and financial institutions, such as mortgage providers and other lenders.

Credit Builder claims that by encouraging tenants to pay their rent on time, it helps to reduce rental arrears for agents and landlords, while also generating mortgage enquires from tenants that are ready to buy.

The new Credit Builder software is fully integrated with Experian’s Rental Exchange and provides agents with the ability to run a comprehensive rent reporting service for all of their tenancies.

With Credit Builder, tenants will consent to the use of the rent reporting service as a condition of their tenancy agreement. Their details will then be imported into the Credit Builder platform and each subsequent rental payment they make will be automatically reconciled and reported to Experian.

Henry Yates, founder and CEO of Credit Builder, said: “The groundswell of opinion that tenants’ rental payments should count towards their credit report is beginning to drive real change in the industry. Many renters are understandably keen for this to happen as they view it as good opportunity to enhance their credit score and improve their chances of being approved for a mortgage. With this in mind agents should consider offering a rent reporting service as this is likely to become an important consideration for new and existing tenants, as well as landlords.

“Credit Builder is a truly innovative platform that will ensure that Lord John Bird’s vision for a fairer rental market becomes a reality. The system will benefit millions of renters in the UK while also providing a valuable proposition for agents by enhancing the service they provide to tenants and landlords.”

Mark Batty, director of Walton and Allen estate agents, added: “Credit Builder provides much needed support for tenants that want to bridge the gap between renting and owning their own home. Credit Builder helps renters to enhance their credit score and to demonstrate to lenders their eligibility for a mortgage.

“The benefit to landlords is proven by the fact that all of our tenants using the Credit Builder platform have paid their rent on time and we no longer spend time chasing late payers. Both our tenants and landlords love the fact that we offer the service and it has provided a real differentiator for us among our competitors.”