Halifax: Sale and rentback needs to be regulated

Date:Wednesday 5th November 2008
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Halifax has called on the government to set dates for details of its regulation of the sale and rentback industry.

In news to interest mortgage holders, Halifax wants consumers of the industry to be protected.

Sale and rentback companies buy properties, usually at a price below its market value, enabling homeowners to stay living there as tenants who pay rent.

Halifax has called for better transparency, a key facts document to give a fuller picture of the market, a procedure for customers who are unhappy with the service they receive and the provision of compensation where necessary.

Joe Higgins, head of mortgages for Halifax, said that homeowners in vulnerable situations "should not be subject to a long delay" and urged the government to give details of its expectations for regulation.

Last month, research by Halifax found that location was the most important factor for most people when choosing a potential home.

Proximity to the countryside could add more than £35,000 to the value of a property, it was discovered.