'More regulation needed' for sale and rent back - buy to let mortgages

15 October 2008

In buy to let mortgages news, the National Landlords Association (NLA) has announced that it is committed to raising standards within the sale and rent back sector.

It comes after a report from the Office of Fair Trading (OFT) highlighted the need for statutory regulation of the industry by the Financial Services Authority.

A consultation was recently held by the NLA in order to develop a code of practice for sale and rent back transactions.

In light of the OFT study, the NLA has stated that it will give its full support to any regulation that encourages transparency and ethical practices within the market.

Chairman David Salusbury commented: "We believe the majority of sale and rent back landlords act with professionalism and integrity. A small number of rogue operators have now brought the entire market under close scrutiny."

Andrea Rozario, director general of Safe Home Income Plans, said that ethical landlords would welcome the OFT's findings.