Following the news that the Financial Services Authority is set to regulate the sale and rent back sector, short term property finance company, Hilton Ventures Plc has spoken out, welcoming the decision.
Head of lending at Hilton Ventures, Andy Eames, stated: “We have been expressing our serious concern in recent weeks about the scams and malpractices affecting the property market. Sale and leaseback has been a key contributor to the proliferation of these bad practices. We applaud this decision.”
The FSA has proposed to implement an interim regime from July to face the most pressing problems consumers are experiencing in relation to unscrupulous sale and rent back firms. A full regime is planned for implementation in early 2010.
As repossession figures rise, more vulnerable and debt ridden individuals are seeking out sale and rent back companies for solutions. Although there are many reputable firms practicing, the industry has been marred by stories of tenants being evicted from their homes just months after selling their properties at prices well below market value.
Manchester-based Hilton Ventures, as a patron of the National Association of Commercial Finance Brokers (NACFB), has said that it is committed to ensuring best practice principles are extended across all the industry.
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