A coalition of MPs, lenders, fintechs, and charities is calling on Chancellor Rachel Reeves to fix Britain’s broken credit system, warning that millions of renters are being unfairly locked out of home ownership.
Following a summit in London on 29 October, the group has sent a joint letter to the Chancellor ahead of the Autumn Budget, urging reforms that would ensure renters’ payment history is properly reflected in credit files.
The intervention comes as the Government prepares to publish the UK’s first-ever National Financial Inclusion Strategy and is aiming to build 1.5m new homes during its term. Campaigners warn that without action to address the credit access crisis, this ambition risks leaving millions behind: unable to buy, not because they can’t afford it, but because the system doesn’t recognise their financial track record.
The open letter – signed by more than 15 organisations including Evlo, The Money Charity, ClearScore, the Consumer Credit Trade Association, and the Finance & Leasing Association – calls for the Government to lead a coordinated national approach that ensures rental payment data is consistently and securely shared with credit reference agencies.
With 5.4 million households now privately renting across Great Britain, the campaigners say the current system unfairly penalises renters, locking them out of financial opportunities simply because their largest monthly expense too often isn’t recognised.
While mortgage payments routinely contribute to credit files, rent payments – often higher and more consistent – do not.
One of the signatories, Labour MP Sam Carling, said: “My constituency has a high number of renters – especially young people – who are working hard to save for a first home.
“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.”
Carling also raised the issue in the House of Commons in October.
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.
Source: Estate Agent Today
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