1 Oct

Sale and rent back regulations 'could strangle innovation'

Sale and rent back regulations 'could strangle innovation'

New product regulations proposed by the Financial Services Authority (FSA) risk strangling innovation and competition, one property expert has asserted.

Robert Sinclair, a director at the Association of Mortgage Intermediaries (AMA), said that the regulatory structure governing the property market ought to balance the need to protect consumers from unaffordable debt with their desire to buy a home of their own.

His comments follow an announcement by the FSA that it has set out a package of measures aimed at protecting vulnerable consumers in the sale and rent back market.

"It is essential that regulatory interventions are both well timed and reflect a full understanding of their long-term impact on the market," stated Mr Sinclair.

He added that the AMA is concerned that high-profile failures in other countries and sectors brought about by certain business models will provoke the FSA into acting.

Few things undermine market confidence faster than regulatory change driven by politics, he continued.

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