Shield clients from rent-back dangers

22 March 2010

I have always supported the supervision and regulation of the sale-and-rent-back market.

The full Financial Services Authority regime due to commence on June 30 will bring even greater confidence to financial and debt professionals who have had the foresight to see rent-back as an invaluable solution for home owners looking to raise cash.

The fact that rent-back will be fully regulated like mortgages and equity release needs to be taken on board by the housing charities and voluntary organisations that deal with families in need of rent-back solutions.

The stringent regime may have the effect of creating a black market for rent-back products, with rogue firms and individuals buying properties from desperate home owners and then renting back to them. Affected consumers will not get the protection they would if they went to an FSA-authorised provider.

So ensure your clients don’t fall victim to the rogue operators that are advertising online and at the back of newspapers.

First, ensure you become an introducer to a rent-back provider or that your network has such a firm on its panel.

Second, take advantage of the training and information provided by companies such as ours to ensure that you and your staff are knowledgeable about the solutions rent-back can offer clients.

Finally, ensure your clients know that rent-back is available and that you are someone they can turn to if they are considering that route.

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