A deposit replacement scheme has added a new service to its app that will let landlords and agents score tenants. It is currently being trialled by Countrywide brand Hamptons.
Renters will receive a TrustScore through the Canopy app, based on their Experian credit rating and paying rent on time in addition to how well they look after the property.
This score can then be used by other landlords and lettings agents when referencing tenants in the future, providing they also use the Canopy service.
Founder Tahir Farooqui said using the service would ultimately help renters buy a property as their credit score is boosted by paying rent on time and being good tenants, which should boost their chances of proving affordability in a mortgage application.
He said: “At Canopy we are 100% focused on making a tangible social impact on the UK rental market, not just for renters, but for the entire UK rental ecosystem. Version two of our app is the next step in our ambitious and exciting roadmap which will help renters to ultimately own their own properties.
“We welcome the launch of the Government’s £2m fintech rent recognition challenge. With 18 months of development already behind us, we believe that our RentPassport, being developed in partnership with Experian, is set to provide consumers with both the independent choice and voice that they need, addressing the Government’s brief head on.”
Canopy launched last year, giving tenants the option of making a one-off payment for an insurance policy from Hiscox that covers the landlord for up to £30,000 in the same way a deposit would.
Each renter is given a RentPassport that looks at personal information such as where they were born, their job, credit report, any sanctions as well as a negative media check, to determine how much they should pay for the insurance.
The cost of an insurance policy is not recoverable, as a cash deposit would be, but it can be reduced to as low as 5% based on good renter behaviour.