UK GOVERMENT GOING SLOW ON HOUSING ACTION.

UK GOVERMENT GOING SLOW ON HOUSING ACTION.

SALE AND RENT BACK RULES MUST BE PRIORITISED,

SNP MSP Bob Doris has called for the UK Government to act now to regulate housing’s sale and rent back market as new figures reveal even more people may be at risk of losing their homes.

New research from the Council of Mortgage Lenders shows 75,000 people could lose their homes in 2009.

In a letter to Glasgow MSP Bob Doris the Scotland Office confirmed that the UK Government has still to decide if it will regulate the sale and rent back market and has still to carry out a consultation and an impact assessment before it makes a final decision.

“HM Treasury will shortly be conducting a full consultation and impact assessment, seeking views on whether the existing regulatory framework is sufficient or whether an alternative is needed. The Government will take a final decision on the recommendation on the basis of that consultation.”

The Office of Fair Trading recently completed a 6 month investigation in to the market and called for regulation by the Financial Services Authority.

Mr Doris said;

“More and more people will be turning to sale and rent back to stay in their homes and avoid repossession.

“It is vital, to stop people being ripped off or put out of their homes that this market is regulated as soon as possible.

“The UK Government and Jim Murphy’s response is deeply disappointing. Regulating sale and rent back would protect people who are vulnerable now.

“The process must be fast tracked.

“Instead it looks like we are still months away from the UK Government accepting regulation is needed, never mind putting it in place.

"The Scottish Government has taken valuable steps with funding for mortgage to rent and shared equity schemes to reduce repossessions as well as ensuring advice centres can meet the increasing demand.

“It is simply unacceptable that vulnerable home owners should be left at risk by the UK Government when the OFT have already set out the solution.”