Tory MP Peter Bottomley has called for urgent action on sale and rent back schemes, by which distressed householders sell their homes for well under market value to buyers – both individuals and company – ¬who then become their landlords.

Estate Agent Today – Monday 24th November 2008

Reported problems include the landlords either going bust, which means the former householders lose their homes, or evicting them after only six months under the normal terms of an Assured Shorthold Tenancy.

Bottomley has now tabled an Early Day Motion which criticises the Government’s ‘weak response’ to calls from the Office of Fair Trading to regulate sale and rent back.

Bottomley says that up to 55,000 property owners have so far turned to sale and rent back, in a bid to stay in their own homes. He is demanding that the Government should now take decisive action and says it is not good enough for it to pledge ‘impact assessment’ and consultation. Full Article