UK MUST REGULATE SALE AND RENT BACK SECTOR .

UK MUST REGULATE SALE AND RENT BACK SECTOR .



MURPHY FAILS TO MATCH SNP ON HOUSING HELP.

SNP MSP Bob Doris today welcomed the SNP Government’s announcement of increased funding for government backed mortgage to rent schemes as he revealed Labour has failed to support action to regulate the crucial sale and rent back market – a move which could benefit thousands of home owners facing repossession.

Sale and Rent Back schemes allow those facing repossession to sell their house but continue to live in it by paying rent.

A six month investigation by the Office of Fair Trading ruled that sale and rent back should be regulated by the Financial Services Authority to prevent unscrupulous operators raising rent, evicting tenants or failing to make payments on the property.

Citizens Advice Bureau, the Council of Mortgage Lenders and Shelter all back the OFT’s recommendation for regulation by the Financial Services Authority.

SNP MSP Bob Doris wrote to Scottish Secretary Jim Murphy nearly four weeks ago urging him to support Scottish Government calls for the Financial Services Authority to regulate this market. Mr Murphy has so far failed to reply and no Labour MSP has signed a parliamentary motion calling for action.

SNP MSP for Glasgow Bob Doris said;
“The SNP wants to see sale and rent back schemes regulated to prevent people being ripped off by unscrupulous operators.

“Labour’s failure to support moves for sale and rent back to be properly regulated is deeply disturbing.
“The Scottish Government has acted to increase the funding available for Government backed mortgage to rent schemes by an additional £5 million and has established a £25 million home owners support fund to help people across Scotland facing repossession.

“A six month investigation by the Office of Fair Trading has called for sale and rent back to be regulated by the UK Government and the Financial Services Authority yet there has been no action.

“At a time when people are facing increasing problems meeting their mortgage payments it is ridiculous that neither the Scottish Secretary nor Labour MSPs are willing to support bringing this market under the control of the Financial Services Authority.”