A new service from Experian®, the global information services company, will enable landlords to better understand the propensity of their tenants to meet rent payments.

The company’s Rental Exchange service will enable landlords to share information about how tenants meet their rental commitments to help prevent fraud and protect against the risk of non-payment.

The service also offers a secure and compliant way to include tenants’ payment history in credit reports. This will help credit providers to obtain a more complete view of customers’ credit performance and their ability to afford financial commitments, improving the insight available to make accurate and responsible lending decisions.

Sian Williams, Head of Transact, the National Forum for Financial Inclusion, said: “This is a very welcome development for many people living in private rented accommodation who until now have often found it difficult to build a credit history. If used well, this could be a very effective tool for allowing them to access a wider range of services at a more affordable cost.

“Key to its success will be ensuring that consumers are well educated about the service. This will include making clear the impact that missing a rental payment could have on their credit rating, especially if it is paid via housing benefit which is often out of their hands.”

Nick Jopling, executive director of Grainger, the UK’s largest listed residential landlord, commented: “As renting increasingly becomes a lifestyle choice for many Britons, it is important that the process for credit scoring accurately reflects a tenant’s status and rent payment history to enable them to have fair access to affordable credit and services. As a socially responsible organisation we acknowledge that sharing this data will have major benefits for both landlords and, more importantly, our tenants.”