Prompt rent payments should be proof that borrowers can afford mortgages, according to a Treasury minister.
Economic secretary to the Treasury Stephen Barclay made the claims in a parliamentary debate on the issue after a public petition.
In the debate on Monday, Barclay said regulations currently allow mortgage lenders to take rent payments into account, but that credit scores can hamper this.
He said: “The Government agrees that a history of paying rent on time is a factor that lenders can consider when assessing creditworthiness but it is a factor alongside other factors that they should take on board.
“Credit reference agencies being able to access data relating to histories of tenants paying rent will benefit both the buyer and the lender.”
Experian already has a scheme that lets rental payments affect credit score.
Barclay says the Government wants to see more examples of this.
Conservative MP Paul Scully added: “Having a more rounded picture of an applicant’s financial history can lead to more informed decision-making by lenders.”
Shadow Economic Secretary to the Treasury, Jonathon Reynolds also backed the principle of taking account of rental payments.
However, a Government response to the petition said the state would not interfere in lenders’ commercial decisions.
The petition was originally filed by Cornish resident Jamie Pogson and got 147,000 signatures.
Pogson says he has promptly paid £70,000 of rent but was struggling to get a mortgage.
His petition said: “Since living on my own I have paid £70,000+ in rent on time yet still struggle to get a mortgage. Unless you’re getting handouts, wealthy or in receipt of inheritance it’s almost impossible.”