Deadline looming for sale and rent back consultation

News Category: Industry News

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Landlords have been reminded that the deadline for submissions to the draft consultation for a code of practice for the sale and rent back sector is approaching.

The code, which has been devised by the National Landlords' Association (NLA) is intended to bring greater regulation the often controversial practice of sale and rent back schemes.

They work by allowing homeowners who are struggling with repayments to sell their property to an investor, who then permits the former owner to remain living there as a tenant.

Among the concerns expressed about the sector is that some unscrupulous property investors are forcing tenants out shortly after agreeing to the scheme and effectively picking up a property at a bargain price.

Landlords and interested parties wishing to comment on the measures in the code have until August 31st to do so.

David Salusbury, chairman of the NLA, said: "As we have said before, people's homes are not like other commodities. We must act in order to ensure those consumers facing financial difficulty and imminent repossession are protected from rogue landlords."

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