HM Treasury is offering 2 million to budding entrepreneurs who can develop an application that will enableBritains 11 million renters to record and share their rent payment data, helping to improve their credit scoresand their chances of getting a mortgage.
Winning bids to the Rent Recognition Challenge will be selected by a panel of leading figures fromthe Fintech sector. The competition will provide an initial round of grant funding to six promising proposalsto help to turn the ideas into a workable product. The expert judges will then whittle the six down to just ahandful of teams who will receive further funding and support to bring their ideas to market.
The Economic Secretary to the Treasury, Stephen Barclay, said:
Peoples monthly rent is often their biggest expense, so it makes sense for it to be recognised when applyingfor a mortgage. Without a good credit score, getting a mortgage can be a real struggle.
Most lenders and Credit Reference Agencies are unable to take rental data into account, because they donthave access to it. The Rent Recognition Challenge will challenge firms to develop an innovative solution tothis problem and help to restore the dream of home ownership for a new generation.
The Challenge will open to applications early in the New Year, and development will conclude in October2018.