The Council of Mortgage Lenders and Citizens Advice support the Office of Fair Trading’s new recommendation today that sale and rent back transactions should be regulated by the Financial Services Authority. The conclusion is the outcome of an OFT market study prompted by the concerns of the CML, Citizens Advice and Shelter, among others.
The OFT’s recommendation is very clear, but the Government will now need to decide whether to accept the recommendation and bring forward specific regulatory proposals. The OFT believes this could be achieved relatively quickly and the CML and Citizens Advice would like to see prompt implementation. While further consultation on specific proposals would be necessary, both organisations strongly support the general direction outlined by the OFT.
source: Council of Mortgage Lenders