As rent is not always recognised in credit scores, CreditLadder, Bud and RentalStep have won a share of a £2m prize fund, as part of the government’s Rent Recognition Challenge, offering apps for renters to record and share their rent payment data, according to the latest report released by HM Treasury.
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.
The three winners will use their funding to further develop their businesses.
Launched in December 2017, the Rent Recognition Challenge provided an initial round of grant funding to six budding businesses to help turn their ideas into a workable product. An expert panel of judges then whittled the six down to three, who today receive a final package of government funding.
John Glen, Economic Secretary to the Treasury said that monthly rent is often the biggest expense that people face.
He added: “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.”
Charlotte Crosswell, CEO of Innovate Finance and one of the challenge’s judges said: “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.”