NLA: Draft sale and rent back code welcomed

Date:Wednesday 8th October 2008

A draft code of practice for sale and rent back deals has been largely welcomed, the National Landlords Association (NLA) has said.

Organisations such as Shelter, Citizens Advice, the Council of Mortgage Lenders and the Royal Institution of Chartered Surveyors have responded to the draft, which was published for consultation in August.

Most respondents said the code of practice could work for building a system to penalise unethical operators.

David Salusbury, chairman of the NLA, said it was important that "vulnerable consumers are protected as soon as possible".

While sale and rent back is not always appropriate, he said some families who can no longer afford to own their homes may need to take out the option.

The NLA recently dismissed claims that the buy-to-let market is dead.

It said that just 25 to 30 per cent of landlords use buy-to-let to fund their property purchases, meaning relatively few are affected by the recent nationalisation of Bradford & Bingley.

Furthermore, the student and immigrant populations are rising, bringing demand for rented properties.