The UK government has announced the names of three Fintechs that have won their “Rent Recognition Challenge.” The competition was simple: find a way to incorporate rent within credit scores to make it easier for renters to gain a mortgage.
The three firms are:
- Bud: 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.
- CreditLadder: CreditLadder allows tenants to report their rent payments. Landlords and Letting Agents can also introduce their tenants to the platform.
- RentalStep: 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.
Challenge Judge and CEO of Innovate Finance Charlotte Crosswell commented on the competition;
“We are delighted to support the Rent Recognition Challenge and address this important issue of helping renters as they look to establish a credit history, helping their journey towards securing a mortgage in the future. The Fintech sector has proven it can provide credible, innovative solutions and we are delighted that government has recognised that Fintech companies have a significant role to play in this market.”
The three firms each receive a cut of a £2 million prize fund which will be used to build out their business.
Launched in 2017, the Challenge is part of a broader initiative to make it easier for UK citizens to purchase homes in the hot UK home market.
“Monthly rent is often the biggest expense that people face,” said John Glen, Economic Secretary to the Treasury. “Yet most lenders are unable to take it into account when working up a credit score. Three pioneering start-ups have found a solution, and we’re giving them the investment and support they need to help millions of renters across the country achieve their dream of owning a home.”