ClearScore has announced the launch of free rent reporting for millions of renters in the UK.
The new service enables users to report their rent payments to three major credit bureaus - Experian, Equifax and TransUnion - directly through the ClearScore app or website.
The service helps renters build a fuller financial track record through their regular rental payments. By bringing rental payments into credit reports, the service also gives lenders a more complete picture of an individual's financial history when assessing creditworthiness.
ClearScore's Rent Reporting addresses a long-standing gap in the credit system, where one of the biggest and most consistent payments renters make each month has not always been reflected in their credit history. While mortgage payments are recognised on credit reports, rental payments have historically not received the same recognition, putting renters at a disadvantage.
The launch comes as research commissioned by ClearScore reveals the average renter has paid almost £60,000 in rent over their lifetime, while one in five (19%) say they have paid more than £100,000. For many, those payments are already comparable to the cost of owning a home, with seven in ten (71%) estimating they are paying the same as or more in rent than they would on a mortgage for a suitable home.
Yet many renters do not feel that their financial track record is helping them move closer to homeownership. Three in five (61%) feel frustrated they can afford their rent but do not believe they could qualify for a mortgage, while two-thirds (66%) believe their rental payment history would help them get a mortgage if lenders could see it.
Rt Hon Justine Greening, chair of The Purpose Coalition and Former Secretary of State for Education, said: "Opportunity should be determined by talent and hard work, not by the barriers built into our systems. Back in 2018, I championed the Creditworthiness Assessment Bill because I believed it was fundamentally unfair that millions of renters could pay their rent reliably every month without that financial responsibility being properly recognised.
"Eight years on, it is fantastic to see ClearScore develop a practical, free solution to this longstanding issue. By using technology to ensure rental payments are reflected in people's credit histories, ClearScore is helping to break down a barrier that has held too many people back from accessing affordable credit and taking the next step towards homeownership.
"This is what social mobility is about: ensuring that people's efforts count and that innovation translates into real opportunities. ClearScore's work demonstrates how businesses can help change systems for the better, giving more people the chance to get on in life."
Justin Basini, co-founder and CEO at the ClearScore Group, commented: "ClearScore is giving UK renters something that we feel is long overdue: free rent reporting, connected to all three credit bureaus, means that every rent payment finally counts.
"Completely free and simple to set up in the ClearScore app, this is a service to help millions of renters finally get greater recognition for the financial track record they are already building. It's an issue that policymakers have been grappling with for almost a decade, and we are delighted to have developed this solution, bringing rent reporting to people across the UK helping them build positive credit history and demonstrate their creditworthiness."
David Bernard, CEO at Equifax UK&I, added: "This expansion of our strategic long-term partnership with ClearScore marks a major step forward for financial inclusion. Our latest Financial Health Report revealed that up to one in four UK adults have a limited credit file or no traditional credit footprint at all. By bringing more rental data into Equifax credit reports, we're giving the UK's nine million renters greater control over their credit profiles and helping to unlock their access to credit. At the same time, it equips lenders to make more informed decisions, promote responsible lending and helping people live their financial best."
