9
Feb
Sale and rent back regulation plans backed
Proposals to regulate the sale and rent back sector have been
welcomed by Citizens Advice.
The schemes see those who are struggling to meet mortgage
repayments sell their home at a discount price in exchange for a
guarantee that they can remain as tenants.
However, a recent Office of Fair Trading study found that some
consumers were being mistreated and the Financial Services
Authority is now considering the introduction of rules to protect
against this.
Commenting on a consultation paper published by the Treasury,
Citizens Advice said it is "pleased" by the recognition of the need
for "urgent action".
"With more people now seeking advice about mortgage arrears it's
important that effective regulation is put in place as soon as
possible," said social policy officer Peter Tutton.
Meanwhile, consumer campaign group Which? has also backed the move,
noting that the introduction of rules will help protect against the
possibility of eviction.
