• Home
• News
• About Us
• Contact Us
• Buy Legal Documents
• Take on my case

Companies that operate in the so-called 'sale and rent back' market are to be subject to stricter regulation, it has been revealed.

As of July 1st, such firms will be regulated by the Financial Services Authority (FSA).

The move follows the findings of a study conducted last year by the Office of Fair Trading (OFT), which found that sale and rent back schemes could cause "serious harm" to vulnerable homeowners.

Under the terms of such schemes, homeowners who are struggling financially are offered the chance to sell their property and remain there as tenants.

The OFT - which aims to make markets work well for consumers - found that some homeowners had been evicted soon after selling their houses cheaply to new landlords despite assurances that this would not occur.

As a result of the new regulations, firms operating in the sector will have to tell customers how long they can stay in their properties before they enter a deal.

In addition, they will have to be run by people deemed by the OFT to be "fit and proper" and will have to apply for authorisation to carry on in the industry.

Meanwhile, homeowners who fall victim to rogue operators may be able to claim compensation as a result of the changes.

09/06/2009 15:12