NLA extends its support to sale-and-rent-back regulation by FSA

Posted under General by Alan

The National Landlords’ Association, representative of 20,000 individual landlords of the UK is committed to raise standards in the sale-and-rent-back sector.

In response to the Market Study on industry by the Office of Fair Trading which recommended regulation of sale-and-rent-back by the Financial Services Authority (FSA), NLA pledged its support.

NLA had recently acknowledged that it was keen in evolving market-led solution to bad practices and declared that its own sale-and-rent-back practice code would be including legally enforceable financial penalties.

NLA chairman, David Salusbury reiterated that NLA’s commitment to improving standards in market would not be affected by OFT’s recommendation about FSA regulation. NLA pledged its support to Government and FSA.

Research by a financial website in the month of July had revealed that there was big lack of understanding about schemes among homeowners who were likely to opt for sale-and-rent-back deals.

The research pointed out that 26% of respondents thought sale-and-rent-back agreements would entitle them to stay in homes indefinitely and were unaware that they could be evicted if their landlords failed in making mortgage payments.

The sale-and-rent-back sector earned bad name since some companies paid less than 60% of the market value for properties.