An investment platform says suggestions to make rental and other payments could towards credit scores could effectively mean that tenants could do themselves a favour by taking out streaming subscriptions.
Caroline Marshall-Roberts, chief executive of the BuyAssociation investment service, says: “It’s questionable that rental payments still don’t carry the same weight as mortgage payments. In many cases, rent is just as high, sometimes higher, than monthly mortgage outgoings.”
And she says attempts to cut red tape and liberalise the mortgage application process, suggested by the government last month, could make it easier for renters to get onto the property ladder, simply by paying their rent on time.
She continues: “At present, rental payments don’t count towards credit scores, which is surprising given how substantial they can be. If these proposals become law, they could help first-time buyers prove affordability and improve their chances of securing a mortgage.
“The English Housing Survey also shows that 71% of private renters in the lowest income bracket spend more than 30% of their household income on rent, proving many are already keeping up with payments equivalent to a mortgage.
“In the meantime, renters can boost their credit scores in other ways. Tools like Experian Boost allow people to use council tax and subscription payments to demonstrate financial reliability. That means Netflix or Apple Music subscriptions could help improve your mortgage prospects.”
Marshall-Roberts adds that with rents now as high as mortgages for many tenants, landlord vetting of renters is increasingly important.
She comments: “Landlords can no longer rely on outdated, surface-level checks. Tenants must be financially eligible, reliable, communicative, and ideally looking to stay long-term.
“Failing to properly vet tenants can lead to costly consequences, from rent arrears to legal disputes and evictions. These issues bring legal fees and lost income, which can far outweigh the upfront cost of thorough checks.”
The latest English Housing Survey shows that 95% of renters are not in arrears as of 2024, meaning most tenants are reliable, but that doesn’t mean issues can’t arise.
“With inflation, interest rates, and energy bills putting pressure on household budgets, even previously reliable tenants can fall behind. Landlords who fail to factor in this risk are taking a gamble. Tenant vetting should be seen as a risk mitigation tool. Early identification of financial vulnerabilities, through clear affordability checks and open communication, can help prevent situations from escalating” she continues.
“Evictions, for example, can lead to lengthy void periods, which not only means lost income but can damage a landlord’s reputation, particularly in tight-knit regional markets.
“Legal proceedings can drag on for months, and landlords may receive no income during that time. In a climate of stagnant wages and rising living costs, landlords need smarter letting strategies, and that starts with better vetting.”
