Equity release firm welcomes sale and rent back code

News Category: Legal

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The National Landlords' Association's (NLA) draft code of practice for landlords involved in the sale and rent back sector has been welcomed by one of the UK's largest equity release providers.

The NLA unveiled its proposals for a code earlier this week in response to concerns over unscrupulous providers operating in the market and calls that the sector is in need of greater regulation.

Responding to the news, Key Retirement Solutions (KRS) said it was "pleased to see that some action is being taken to address practices in the growing sale and rent back market".

However, the KRS stressed that it is only when the Office of Fair Trading has completed its study of the sector that the areas which are most in need of regulation are discovered.

Dean Mirfin, business development director of the firm, said: "We are pleased by this first step by the NLA, but do not think thatthis will be enough until the Government and the Financial Services Authority (FSA) investigate this market fully as a matter of urgency and consider regulation before it becomes a future financial scandal."

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