An open letter signed by charities and finance organisations demands the sharing of rental payment data with credit reference agencies.
The signatories say the current system unfairly penalises renters, locking them out of financial opportunities simply because their largest monthly expense too often isn’t recognised.
“Every day, we meet people who’ve never missed a rent payment but are locked out of affordable credit,” says Jono Gillespie, chief executive of finance firm Evlo. “It’s a clear injustice that needs to be fixed. Increasing rental payment data sharing would give people a fairer shot at building their financial future and open the door to opportunities that are currently out of reach for millions. It’s a simple change that could have a transformative impact.”
While mortgage payments routinely contribute to credit files, rent payments – often higher and more consistent – do not.
The campaigners claim 20.2m adults are financially underserved, a 50% increase since 2016. One in three adults cannot access mainstream credit, and over 3m have turned to illegal lenders in the past three years.
“My constituency has a high number of renters – especially young people – who are working hard to save for a first home,” says Sam Carling MP, a supporter of the campaign. “But many find that their rent, which often makes up a big chunk of their monthly income, isn’t recognised when they apply for mortgages or other types of credit. Thin credit files are stopping people who already manage rent payments from accessing the support they need to move forward. This is a simple, common-sense change that would make a real difference – helping people demonstrate their financial responsibility and, in many cases, take their first step onto the property ladder.”
With the Treasury reviewing the 50-year-old Consumer Credit Act, and the Government soon to publish the UK’s first-ever National Financial Inclusion Strategy, campaigners say this is a rare opportunity to fix a long-standing gap in the system.
They are calling for the government to lead a coordinated national approach that ensures rental payment data is consistently and securely shared with credit reference agencies. This would include:
- Empowering renters by giving them the right to opt-in to have their rental payments added to their credit files.
- Supporting landlords and letting agents with clear guidance and incentives to participate in rental data reporting schemes.
The letter was signed by: Evlo, Aspire Money, Believe Money Group, Borderway Finance, ClearScore, Comparitec, Consumer Credit Trade Association, CreditLadder, Everything Financial, Finance and Leasing Association, Infact, Infinian, Loans Warehouse, Loan Tube, Moneyline, Norton Finance, Quint Group, and The Money Charity.
