A new tenant referencing service designed to provide true, accurate affordability assessment of applicants, and mitigate fraud risk, has been launched by HomeLet.
Based on a wide range of datasets, the tenant referencing firm will streamline much of its processes, with 70% of tenant reference applications being completed in real-time and 30% on the same day. The solution will also quickly identify any applications which may need further investigation.
HomeLet says in the last year alone, fraud within the lettings industry has increased by more than a third. The increase in fraudulent activity is not solely attributable to an increase in criminal behaviour. Market conditions have pushed more individuals towards deceptive practices to secure rental housing.
From counterfeit credit files to advanced document manipulation, tenancy fraud has become more strategic, complex, and targeted. HomeLet says it receives more than 200 fraudulent tenancy applications every day.
By deploying solutions in partnership with Experian, HomeLet is looking to clampdown on this rise in fraud.
Increasing rents and rental property shortages, combined with the cost-of-living-crisis and inflation means understanding affordability has rarely been more important for landlords, tenants and letting agents.
VISTA is designed to deliver a clearer, accurate picture of a tenant’s affordability, in rapid time.
This means applicants will receive the outcome of their application quickly, so they are in the best position to secure the property they want, whilst ensuring they let a property which is suitable and appropriate for their current financial circumstances. Giving peace of mind to tenants, landlords and letting agents.
Andy Halstead, CEO of HomeLet and Let Alliance, said: “Through VISTA, we are about to revolutionise tenant referencing services in the UK. Our advanced referencing process surpasses all existing solutions, providing the highest protection for our agents and landlords in the face of the housing market crisis and rising fraudulent references. The VISTA journey for tenant applicants is simple, and the outcomes for letting agents are instant, accurate, and give our customers a competitive edge. For the first time in the UK, tenant applicants will go through an affordability assessment that is based on much more than earnings alone.”
VISTA is the result of an investment of over £3m and three years of research and development combined with over 30 years of specialist industry expertise and proprietary data. The solution harnesses the power of data, technology, and human expertise to deliver a fully optimised tenant referencing solution, offering the highest level of protection for letting agents and landlords.
Scott Hardiman, managing director, Decisioning, Experian UK&I, commented: “We are delighted to be working with a forward-thinking leader such as HomeLet. The solution brings Experian’s advanced analytics, data and deployment software to the letting sector, to enable more faster, fairer and more accurate decisions for customers.
“Increasingly automation plays a critical role in helping businesses achieve their aims and we’re proud that our services can support them in doing so.”
Key features of VISTA include:
+ A scorecard that evaluates an applicant’s suitability, considering factors such as credit commitments, credit agreements, and overall indebtedness. This ensures a fairer assessment, avoiding unnecessary penalties for those who have rectified their payments after bankruptcy or County Court Judgements (CCJs)
+ A future focused affordability calculation using ongoing credit commitment data
+ Enhanced verification of applicants’ identification and addresses, with rigorous checks to confirm multiple data sources
+ An accurate fraud detection system that identifies inconsistencies in applicant data, raising alerts for further examination by our expert team
+ A dedicated and expert team committed to reviewing any alerts or anomalies and ensure the smoothest process possible, creating a solution that has the perfect blend of data, technology, and people.
Always concerned with same day references, a couple of years ago one agent placed a tenant who passed referencing only to be made bankrupt 3 months later, concerned obviously contacted ref company to say “they were not bankrupt the day we referenced them and and we have proof of this” knowing that you can’t bankrupt someone overnight-clearly the system is wrong.
So always take a home owning guarantor/s who are referenced as well. If the tenant can’t find someone to trust them then sorry nor will I, with the crumbling court system currently in place.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
In reality affordability of rent comes down to 3 things.
What a tenant earns – can be checked and verified.
What a tenant spends – much harder to assess.
The desire to pay or not. History would be a help.
I try and make my own judgement about people when I meet prospective tenants, it can only ever be a best guess. When I was starting off I was caught out by a gambling addict – although the fact he had no bank account and had his wages paid to his partners account should heve been enough I wasn’t wise enough to guess the reason, and the agent and referencing never flagged anything.
I had a house with a lot of interest recently and when choosing my prefered tenant the agent was suprised I didn”t opt for the tenant with the best job and highest income. It was a judgement call, but the young lady was driving a white BMW with a personal plate, hair extensions, false nails, lip fillers, botox etc (as identified by wife) and wanted to get a place secured quickly before the girls holiday in Marbella.
Judgemental and potentially completely wrong my assumption was that this candidate might put other priorities before the roof over her head. I’ve had rent excuses in the past along the lines of “Can’t pay this month, we’ve been buying Christmas presents” and “Totally skint this month after our holiday” – the holiday couple then went on to tell me about the tickets to a sportmans dinner with a famous boxer they were attending – but no rent money!!
So despite what the referencing might say I believe you have to try and stack the odds in your favour when choosing a tenant based on lifestyle and attitude to spending too.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
I see your point, but also as a young girl who prides herself in her appearance, I would never prioritize this over paying rent or mortgage payments. It’s a shame that people can be so judgmental based solely on appearance.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
How about we start referencing landlords? I want to know the last time you issued a section 21. I want to know whether you’re behind with your mortgage payments.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Great idea, I can guarantee you’d get a higher percentage of decent individuals than you do with tenants. A landlord has already proven themselves to be capable and financially savvy by that fact that they own property.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register