Call for new sale and rent back regulations

News Category: Industry News

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The sale and rent back sector requires regulation to prevent debt-hit Britons from suffering further misery, it has been claimed.

According to the Chartered Institute of Housing (CIH), the growth of the schemes which enable a homeowner to sell their property and remain living in it as a tenant, could mean that "misery is being stored up for homeowners in the future".

The CIH identified the fact that the deals are done so quickly as a cause for particular concern since this means that participants are afforded very little consumer protection.

Sarah Webb, chief executive of the CIH, said: "Many homeowners are already paying the price for the mistakes of some financial institutions. It seems inconceivable that we can expose homeowners to a second round of misery from an unregulated sector which may be offering inappropriate financial solutions.

"We would urge the Office of Fair Trading (OFT) and government to look at this market now and put in place some essential protection from worried homeowners."

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