Salans calls for sale and rent back Code

Caroline Havers, partner at Salans, said: “The launch of a market study into sale and rent back comes at a good time for the industry. With repossessions on the increase, we believe that sale and rent back gives borrowers an alternative option to losing their home.

“However, we urge the OFT to be open-minded about the sector and consider the advantages these schemes can offer to those borrowers facing repossession. It should not just judge the sector by the actions of those unscrupulous providers who are currently giving sale and rent back a bad name.”

The OFT has said that it intends to take a detailed look at the characteristics of sale and rent back and consider whether existing consumer protection legislation is sufficient and effective. It plans to contact trade bodies, providers of sale and rent back arrangements, consumer groups and other organisations associated with the industry.