Financial Service Authority to Regulate Sale and Rent Back

Landlords and Property Investors who invest using “sale and rent back” schemes are to fall under the remit of the Financial Services Authority.   Widely seen as a way for mortgage payers who can't afford their repayments to become rental tenants instead, certain authorities believe that unsuspecting mortgagees may have been misled into unfair schemes
A Treasury spokesperson has said, "The Government is proposing tough new regulation to give vulnerable home owners better protection when they need it."

Whilst the motive is commendable, many ethical landlords and investors that provide a very valuable service will be unfairly penalised.  A broad brush approach is being used to tackle what is a relatively small problem in a wider marketplace.

One very likely outcome is that home owners who may previously have been rescued from repossession, will now face the very real prospect of being made homeless with nowhere to go.