OFT to assess sale and rent-back market

The Office of Fair Trading (OFT) has revealed its intention to assess the fairness of the so-called sale and rent-back market in the UK.

With debt management problems worsening for many homeowners, the OFT expects to see a rise in the number of people considering selling their home at a much reduced price in order to remain as a rent-paying occupant.

As a result, the office is keen to assess whether the current regulations relating to the sector offer adequate protection for people looking for a solution when faced with the prospect of repossession.

“Sale and rent-back schemes might be helpful for some consumers but there are a number of potential concerns including whether consumers in difficult circumstances are making well informed choices,” explained the OFT’s chief executive, John Fingleton.

Last month, a High Court ruling gave the OFT the legal right to decide whether bank charges are fair on consumers, many of whom have seen their struggle to become debt free made more difficult by the actions of their financial service providers.