Obtaining
Sell and rent back advice is so important especially now that the office of fair trading has studied the Sell and Rent Back market which can be
found here:
http://www.oft.gov.uk/advice_and_resources/resource_base/market-studies/completed/saleandrentBelow is the summary of the study which as you can see clearly states that the FSA needs to regulate this industry.
Summary of recommendations
11.51 Our main recommendations are, therefore, as follows:
• The sale and
rent back sector should be regulated by the FSA.
Regulation should cover:
- Transparency – there should be
clear disclosure of the basis for
the valuation for sale, how rent is to be set, and the security of
tenure.
OFT1018 98
- Advice – there should be a requirement to make consumers
aware of sources of independent advice,
and to allow time for
advice to be taken.
- Reducing the risks to consumers – either by ensuring that firms
offer more secure forms of tenancy, or providing regulatory
safeguards such as guaranteed access to compensation.
• In the short term, Government programmes targeted at people
experiencing financial difficulty over housing should
include efforts to
raise awareness of sale and rent back, with the key message being
that it is a risky product
and that those considering it should seek
independent advice.
• DWP should provide greater clarity on the eligibility
of sale and rent
back tenants for housing benefit.
