Landlords call for regulation of sale-and-rent-back

Almost two thirds of landlords believe that the sale-and-rent-back sector needs to be regulated, reveals the latest data from the BDRC.

The BDRC, a specialist market research company, polled over 500 private landlords in June as part of its quarterly Landlords Panel looking at investor attitudes and expectations of the rental sector.

It found that 64% of landlords feel that sale-and-rent-back needs to be regulated, with an additional 58% of respondents worried that such schemes could be misused.

But 46% of those polled also believe that sale-and-rent-back schemes serve a useful purpose for landlords and home owners, with 19% of investors looking to build on the number of such properties in their portfolios.

Mark Long, client services director at BDRC, says: “The sale-and-rent-back phenomenon has been born out of the credit crunch. Almost half of private landlords see it as a positive mechanism to help cash-strapped home owners remain in the same house and avoid further disruptions to their families.

“It is reassuring to see that almost two thirds of landlords want regulations to avoid abuse of the system because the supply of housing in Britain is increasingly reliant on
private landlords.”