Tech firms win 2 million prize to help UK's renters onto the housing ladder

Posted by Cherry Mortgage & Finance Ltd on 14th November 2019 -

First time buyers are set to have a boost to their chances of getting a mortgage.

• Rent is not routinely recognised in credit scores, making it harder for renters to get a mortgage
• A share of £2 million of government funding has been awarded to three innovative start-ups with a solution
• The winners offer apps for renters to record and share their rent payment data, helping boost their credit score

Renters who are unable to get a mortgage due to a lack of credit rating will be able to increase their chances through one of three new start-ups backed by the government. The Dragons’ Den style challenge tasked entrepreneurs to create a simple way for renters to record and share their payment data, to help them improve their credit score. And three tech entrepreneurs - CreditLadder, Bud and RentalStep - have each won a share of a £2 million prize fund as part of the government’s Rent Recognition challenge.

As rent is not always recognised in credit scores, the start-ups are offering three different apps for renters to record and share their rent payment data to help them improve their credit score and in turn help them get onto the property ladder, according to the latest report by HM Treasury.

An expert panel of judges decided on the winners of the government funding and they will now be helping ordinary Brits get onto the property ladder where previously they wouldn’t have potentially been able to.

The three winning start-ups are:

1. Bud is building an AI driven rental recognition tool. It will allow banks to integrate it into their apps so that people can use their rental history to help them do things like apply for a mortgage.
2. CreditLadder allows tenants to report their rent payments. Landlords and Letting Agents can also introduce their tenants to the platform.
3. RentalStep is a landlord-tenant matching platform, which allows landlords to purchase a tenancy management service through the platform, and rental payments to be tracked and reported.