Sale and rent back market shut down by FSA

The Financial Services Authority (FSA) has shut down the sale and rent back market after concluding that most deals were unsuitable and should never have been sold.

Under the deals, home owners struggling with the mortgage could sell their property to a company which would rent it back to them.

The FSA reviewed the sales practices of all regulated sale and rent back firms and found failings including:

- Failing to consider affordability and not giving customers enough time

- Giving incorrect information

- Financial promotions that breached FSA rules

- Inadequate training and record keeping.

Source: About Property

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