Twelve firms offering sale-and-rent-back services have agreed to change their adverts or take down their websites completely after a challenge from the Office of Fair Trading.
Natalie Martin, MortgageStrategy.co.uk – 31-Jul-2009
The OFT issued formal notifications to the firms in January about advertising for rent-back services.
The OFT asked the firms to substantiate claims made in their adverts or change them – typical statements included that residents are able to live in properties for life after they have sold them, benefit from low rent or buy back their homes at any point.
The firms have agreed to stop or amend publicity:
Six companies have taken down their websites – propertysaleforcash.com, myhomerescue.co.uk, UKsaleandrentback.com, skpropertysolutions.com, fullhouseuk.com and quicksalefast.co.uk
Three businesses no longer offer sale and rent back – n-and-b-property-buyers.co.uk, sell-your-house-quick-help.com, and rapidhomesale.org, and
three firms’ websites have been amended – sell-quick.co.uk, nationalpropertybuyers.co.uk, and quickpurchase.co.uk.
This action follows a market study by the OFT which recommended that the rent-back sector was regulated.
Heather Clayton, senior director of consumer protection at the OFT, says: “The unsubstantiated claims used by some sale and rent back firms have been particularly concerning since they were targeting consumers suffering financial difficulties and at risk of losing their homes. We are pleased that these firms have agreed to change or remove their advertising.”
The FSA regulation of sale and rent back is the best thing that ever happened to this market. We have been in this market for a long time and have seen how it was abused by other operators. More and more advertisers will change their Ads as the FSA start to get strict on this issue.
Comment by Sell Home Rent Back — 2/8/2009 #
This can only help. Since the SARB market has received such bad media lately. Consumers need to be aware that sell and rent back may not be the right option from them and that they should get impartial advice from the citizens advice bureau and national debt helpline before making any decision.
Comment by Sell and Rent Back — 19/8/2009 #