View more on these topics

Rent-back still operating despite shutdown by FSA

A number of firms are still offering sale-and-rent-back services despite the Financial Services Authority declaring the market temporarily shut less than three months ago.

Mortgage Strategy has contacted a number of firms providing rent-back services and has been offered the facility by two firms.

In February 2012 the regulator claimed the market was temporarily shut after it carried out a review of 22 firms and found most schemes were either unaffordable or unsuitable and never should have been sold.

Out of the 22, only nine had been active since the FSA began regulating rent-back in June 2010.

Of these, one had been referred to the FSA’s enforcement division while others either stopped taking on new business or cancelled their permissions.

When Mortgage Strategy contacted one firm, which is listed as having applied to cancel its FSA permission, it told us: “We offer a rent-back service. You would sell the house to us and then rent it back from us directly. But we can’t offer a long-term rental, it is just short term and varies on the property and area.”

It said a typical rental would be between six months to a year.

Another firm that was not on the FSA register told us that if we filled in the online application form, it would contact an associate to see if they would be interested in buying our property and renting it back to us.

A spokesman for the FSA says that when a firm applies to cancel its permission, it can still trade for six months after its application date.

But he says: “It was our understanding that when we declared the market shut, none of the businesses were offering new business and were just servicing past cases.”

The spokesman adds that its review looked at regulated firms and that no doubt there are still firms operating outside the law.

Recommended

FSA advises vigilance over hijackers

The Financial Services Authority is warning brokers to be wary of property hijacking. The regulator says it has seen an increase in cases where fraudsters try to obtain mortgages on empty properties they do not own, which it dubs property hijacking. The fraud is perpetrated by introducers who are not local and are unknown to […]

JONATHAN-SAMUELS.jpg

B2L market is the only beneficiary of eurozone carnage

In fewer than five years, it has gone from hero to zero and back to hero again. But whoever says the buy-to-let market is heading for zero-dom once more – and there are voices saying just that – isn’t looking at the same economic landscape I am.

A bull case for US equities?

Neptune video: a bull case for US equities?

Watch Felix Wintle, head of US equities at Neptune, discuss why he believes US equities are in a structural bull market and the key factors that can drive the S&P 500 higher.

In the video, Wintle addresses the following:

• The US market and why — despite equities rising from 2009 — he believes the structural bull market only started in 2013
• Key economic and corporate factors that can drive the S&P 500 higher
• Investment themes and sectors offering exposure to the domestic recovery

Newsletter

News and expert analysis straight to your inbox

Sign up