NLA sets out guidance for sale and rent back

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Landlords of residential lettings are to be issued with a code of practice concerning sales and rent back schemes by the National Landlords Association (NLA).

Under the current guidelines published today (June 4th), the NLA stated that every tenant and member landlord in a sale and rent back scheme will have access to an independent dispute resolution service.

The announcement comes as the Office of Fair Trading (OFT) is in the process of conducting its market study into the new product.

Any landlord that breaks the code of practice could face significant financial penalties, confirms the NLA.

Chairman of the NLA David Salusbury notes that the organisation should be in a position to publish the code by the end of June.

He said: "The guiding principles we are releasing now give a strong indication of the NLA's determination to offer robust levels of protection to distressedhomeowners and their families.

"People's homes are not like other products and services and we must act now to ensure these vulnerable consumers are protected from rogue operators."

The NLA also hopes to address principles of redress, transparency and raising overall standards in the final code of practice.


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