A leading credit reference agency has announced that from the New Year credit reports will now include rent payments.

With these details being made available to landlords and lettings agents to view, will mean that the chance of taking on a tenant who has historically paid their rent late will be greatly reduced.

However those who do pay late will not only find their chances of being able to rent a property drying up, it will also hinder them in getting credit cards or future mortgages.

The plus side for those who pay their rent on time will in theory be able to get financial products and services much easier.

A scheme is being introduced by the agency and the investment arm of of a charity.

The credit reference agency’s  managing director of UK customer information, Jonathan Westley, says: "For credit providers to lend responsibly, but also prevent fraud, they need a more complete view of customers' financial commitments and payment history.

"The addition of rental payment data will improve the insight available to make accurate and responsible decisions.

"This initial analysis clearly shows the overwhelmingly positive impact the Rental Exchange will have. The more housing associations that start to share data with us, the more we can help address the problem of financial exclusion in the UK."