The hot topic at the moment in the UK are the Rent Back Schemes. These are schemes where companies will buy your house from you, normally if you are desperate for a quick sale, you may have rent arrears for example. Once they have bought the property from you then they often will give you first refusal to rent the property back from them. This has caused a lot of controversy with many home owners selling their property and renting back only to become homeless when the company who bought the property default on the mortgage payments and the house becomes repossessed.
There are many calls for this form of the industry to become regulated, the British Property Federation are looking for the Financial Services Authority to perform the regulation. The industry is so concerned by these schemes that an authority board has been setup, National Association of Sale and Rent Back (NSARB, the intention of this is to work with the Council of Mortgage Lenders, property investors, landlord association and landlord charities to bring in a at the moment voluntary code of practice.
At the very least this will help the thousands of people who get into financial difficulty to have some form of assurance within this sector.
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