'Clock ticking' over SRB scheme applications

Firms that wish to continue providing sale and rent back (SRB) products to homeowners have one month to submit an application for interim permission, the National Landlords Association (NLA) has said.

The organisation issued the reminder concerning new rules which were introduced by the Financial Services Authority.

Under the regulations, SRB is to become a regulated activity and applicants wishing to stay in the market will have to show that they meet minimum standards.

Aimed at householders experiencing financial troubles, SRB schemes offer a quick sale of homes at a discounted price by buy-to-let investors. In return, the former homeowners are allowed to remain in the property as tenants.

John Socha, vice chairman of the NLA, said: "The clock is now ticking if companies or individuals want to continue with SRB transactions."

He added: "Only when sale and rent back operators are within a more regulated environment can we be confident that consumers will be treated fairly."
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22/07/2009 14:41

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