Share
Increasing value of rent-back schemes
With the number of social housing places at an all-time low demand is so great that only priority cases have a chance of being addressed and at a substantial cost to taxpayers.
Meanwhile, neighbourhoods suffer as properties sit empty for a considerable time and become targets for vandals.
With housing in such short supply it doesn’t make sense to waste homes which means that sale-and-rent-back firms should be seen as a force for good.
We have developed products that work alongside debt management schemes to provide a complete solution for consumers and a valuable tool for insolvency practitioners.
Rent-back will eventually gain recognition as a solution to many of the problems consumers are experiencing.
In return for a share of equity it is a chance for home owners to clear debt, pay a reduced rental and raise capital to meet other financial needs.
I believe rent-back can get the financial system flowing again - surely it makes sense for banks and lenders to offer struggling home owners a regulated rent-back product as an alternative to their current mortgages.
The Financial Services Authority governs both lenders and rent-back providers. It should make it a requirement for lenders to provide rent-back information to struggling borrowers. The rent-back industry is more than willing to get involved.
DANIEL LOWERSON
PARTNER
DFB HOUSING SOLUTIONS
If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat
