Winners of the government’s Rent Recognition Challenge will use their prize money to create simple to use apps that will help renters towards owning their own home
The innovative new apps will help renters boost their credit scores by recording and sharing their rent payment data, a significant improvement which will dramatically increase their chances of getting a mortgage.
A share of £2 million of government funding has been awarded to the three start-ups to fund their solutions.
The winning start-ups 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.
John Glen, Economic Secretary to the Treasury said: “Monthly rent is often the biggest expense that people face. 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.”
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 received a final package of government funding.
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.”