A six month investigation by the Office of Fair Trading recommended the Financial Services Authority take on the regulation of the sale and rent back sector, including ensuring anyone considering sale and rent back is given independent financial advice and that the UK Government clarify the position in relation to housing benefit of those using sale and rent back schemes.

Commenting on the proposal from the OFT Bob Doris said: "It’s time Cathy Jamieson called on her own party in London to do as the Office of Fair Trading has asked and regulate the sale and rent back sector.

"Instead of falling for Gordon Brown's spin over repossessions in England will Cathy Jamieson back Scottish homeowners and support cross party calls for real regulation of the sale and rent back market by the right authorities?

"Unlike Scottish Labour’s five minute investigation of the housing market the Office of Fair Trading has spent six months looking at the sale and rent back market and have called on the Financial Services Authority to regulate the sector.

"The UK Government should take action now to allow the FSA to regulate sale and rent back and offer security and safety to those who feel this is their best way to stay in their homes and manage their finances.

"The Scottish Government announced in August measures to help homeowners with a £25 million Home Owners Support Fund to help those who may be facing repossession find a way to keep their homes whether through shared equity or mortgage to rent.  It’s time for the UK Government to do their part.

"Labour should join other opposition parties and show support for homeowners and for the Office of Fair Trading by urging the UK Government and the FSA to properly regulate sale and rent back."

Note:

The Parliamentary Motion lodged by Bob Doris is as follows;

S3M-02831 Bob Doris (Glasgow) (Scottish National Party): Protecting Worried Homeowners— That the Parliament notes the pressure placed on homeowners and the uncertainty created by the current economic crisis; acknowledges the content of the Office of Fair Trading (OFT) market study report on the UK sale and rent back (SRB) sector where private firms buy and rent back, often at well below market value, the properties of homeowners, often where homeowners are struggling to keep up mortgage payments and facing repossession; condemns the bad practices of some SRB firms, such as giving a verbal commitment on a long-term lease, while in reality committing only to a short-term lease and subsequently charging inflated rental prices to former owners, resulting in their being forced out of their homes; agrees with the OFT report, which recommends regulation by the Financial Services Authority (FSA) as well as ensuring that homeowners considering the SRB option are given independent financial advice and that the UK Government provide greater clarity on the rights of former homeowners in relation to the claiming of housing benefit, and strongly urges Jim Murphy, Secretary of State for Scotland, to join the Scottish Government in pressing the UK Government to act on and implement these recommendations, particularly regulation by the FSA, as quickly as possible.