9 Feb

Sale and rent back regulation plans backed

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.

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