Sale and rent-back schemes, sold to homeowners who cannot afford their mortgages, are to be regulated by the Financial Services Authority (FSA).

The schemes are widely advertised, and are promoted as a way of swapping a mortgage for an affordable tenancy.

The authorities are worried some people have been tricked into unfair deals.

The FSA will regulate the sale of these schemes from July this year, which will give it the power to ensure they are fair to home owners.

At the Berkshire Property Meet, there was a very interesting presentation by Phil Martin of the Rent Back Charter, about the ideas proposed by the Government to regulate the sale and rent back market . It may well be that sale and rent back becomes so regulated that the individual investor is unable to purchase these type of investments.

 Unfortunately for everyone I think this means that many people who would have been saved from repossession thanks to a sale and rent back investor will no longer be rescued. Ironically, the Government’s planned regulation to help people will probably result in more people being repossessed



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