The British Government should create a central database of house holders in rented properties as an alternative to the current system of tenant funded credit and reference checks, it is claimed.
According to a new policy paper from the Royal Institution of Chartered Surveyors (RICS) the proposed database would hold landlord references and past rental payment histories for up to 10 million house holders currently living in private and social rented properties across the country.
RICS says that it would be particularly beneficial to more vulnerable tenants with poor credit ratings, as it would allow landlords to access other vital information, such as past rental histories, therefore allowing them to look beyond traditional measures of suitability.
Under the plan outlined by RICS the database would also offer an alternative to the tenant funded credit checks that Government is looking to axe next year. Details could only be accessed with the tenant’s permission.
‘An ever increasing proportion of the population is looking to rent. By 2025, we know that there will be a 1.8 million shortfall in rental properties and that could mean a rise in homelessness,’ said Jeremy Blackburn, RICS head of policy.
‘It will be hard enough for those young professionals who cannot afford to buy to find a rental home, but for those on the breadline who cannot provide the usual spread of credit references, it could prove impossible,’ he added.
Similar pilots are being successfully trialled across England. For example, Kettering Borough Council offers a voluntary tenant passport scheme for those currently in social housing who wish to move into private rented accommodation. This allows potential landlord to see that they have been good tenants, even though they may have poor credit history.
The development of a detailed database of renters in both social and private sectors as an alternative to credit checks is one of many recommendations that RICS is putting to Government ahead of the publication next year of the Housing White Paper.
Others include introducing a number of key measures to drive up standards and supply of rental accommodation in both the private and social sectors and action to tackle current and future problems for rental sector participants and homelessness.
