AMI backs clampdown on sale and rent back

News Category: Legal

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Calls for regulation to prevent aggressive selling of sale and rent back schemes by landlords have been backed by the Association of Mortgage Intermediaries (AMI).

It follows the Office of Fair Trading's (OFT's) investigation into the practice and subsequent recommendation for statutory legislation to be introduced to offer better protection for consumers.

Chris Cummings, director general of AMI, said some consumers have been "aggressively sold" sale and rent back schemes amid the tough economic climate facing homeowners as a result of the credit crunch.

But he added: "There are a number of good companies who are trying to distance themselves from examples of bad practice."

Earlier this month, David Salusbury, chairman of the National Landlords Association, backed the OFT's recommendations but blamed a small number of "rogue traders" for attracting negative media coverage of the entire sale and rent back sector.

The Council of Mortgage Lenders has also backed calls for the introduction of sale and rent back legislation.

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