Shelter, the Housing and Homelessness charity, is calling on struggling homeowners considering using a private sale and rent back scheme to make sure the company they use is regulated before making a commitment about their property. With effect from 1 July 2009 all private sale and rent back companies are required to be regulated by financial watchdog The Financial Services Authority (FSA) or they are operating illegally. Shelter has urged vulnerable home owners to think very carefully before entering any arrangement, and to make sure their company is authorised by the FSA before signing up to any schemes.
Sale and rent back companies provide vulnerable and struggling homeowners with the chance to sell their home at a discounted price and rent it back. This enables people who may not wish to leave their home to remain and become a tenant instead.
Last year, an investigation into sale and rent back by the Office of Fair Trading (OFT) uncovered evidence that some scheme operators misle…