New regulations for sale and rent back sector
Date posted: 03 Jul 2009
Businesses and landlords operating within the sale and rent back (SRB) property sector will now face a more stringent system of regulations, according to the Financial Services Authority (FSA).
Suppliers of such products will now have to apply for interim authorisation from the FSA to continue with their operations, as the regulatory body looks to improve the security of UK consumers.
Businesses and landlords operating within the sale and rent back (SRB) property sector will now face a more stringent system of regulations, according to the Financial Services Authority (FSA).
Suppliers of such products will now have to apply for interim authorisation from the FSA to continue with their operations, as the regulatory body looks to improve the security of UK consumers.
Providers of SRB schemes, which offer people the chance to sell their property to a company before renting it back from them at a market rate, have largely been unregulated in the past, which is said to have left many householders open to problematic deals.
The FSA will now monitor the sector more closely, making it illegal for firms to offer SRB products without the authorisation to do so.
A number of bodies have welcomed the FSA's new focus on better-regulating the SRB industry.
The National Landlords Association said the move should make providers more transparent and ethical with their customers.
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