Regulation of SRB schemes now in place

As of the beginning of this month, the regulation of sale and rent back (SRB) schemes came into effect.

Under the terms of the new rules, SRB landlords and companies will have a month to submit an application for interim permission to continue with their activities.

SRB will become a regulated activity and applicants wanting to continue in the market will have to demonstrate they meet minimum standards.

For example, operators will have to guarantee access to independent property valuations.

Commenting on the interim regime, John Socha, vice chairman of the National Landlords Association, said: "Ethical sale and rent back must be an option for some consumers. It provides flexible tenure and the ability to remain in their property for those who can no longer afford the costs of homeownership."

SRB schemes are aimed at householders who are having financial troubles.

Such people are offered a quick sale of their home at a discounted price by buy-to-let investors and, in return, become a tenant in the house.
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02/07/2009 15:12

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