Sale and rent back probe welcomed
Published: 15-May-2008
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The recently-announced plans to investigate sale and rent back schemes, which will be conducted by the Office of Fair Trading (OFT), have been welcomed by the NLA.
It was noted by the organisation that, with the impact of the credit crunch putting an increasing strain on people's finances, more and more homeowners may turn to sale and rent back.
Under these schemes, property owners can sell their house to a company in order to pay off their debts. The property can then be rented by the previous owners if they so wish.
David Salusbury, chairman of the NLA, commented: "Sale and rent back is relatively new but is set to grow considerably over the next 12 months. With a tighter economic climate, there is bound to be more interest from homeowners who are struggling to keep up with their mortgage repayments and are looking to stave off repossession.
"Sale and rent back will not be right in all situations and it should not be seen as some kind of panacea to serious financial difficulty."
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