Cash-strapped homeowners considering selling their home and renting it back urgently need regulation to protect them, according to the consumer watchdog.
Simon Lambert, This is Money – 15 October 2008
An in-depth study by the Office of Fair Trading into sale and rent back firms has found some are misleading customers about the value of their properties and security as tenants.
Vulnerable homeowners unable to keep up with mortgage payments are being offered the ability to sell and then rent back their property by an array of firms, ranging from large companies to small buy-to-let investors.
But many receive much less than they could get on the open market, or even by selling at auction.
Despite some firms telling people they would be able to stay in their homes for years, with no increase in rent, there is no such guarantee. Full Article
According the property website, PropertySnake, which tracks the house price variation, some UK properties have been reduced in value by more than 45%. More and more people are desperate to sell and have started using the services offered by the likes of Sell house fast instead of the traditional estate agents.
Comment by Oliver Darraugh — 30/10/2008 #