22 October 2009
Warning issued over property sale and rent back operators
Homeowners have been issued a warning concerning operators of property sale and rent back schemes.
According to housing charity Shelter, which was founded in 1966, unlawful firms are still trading in the sector.
It suggested that, despite the introduction of strict regulation, consumers are still falling foul of "unscrupulous" businesses who ultimately leave them homeless.
Out of 18 companies observed by Shelter that advertise regularly in the press, four were still not signed up to the new rules.
Director of policy and campaigns at the organisation Kay Boycott said: "If almost a quarter of the big firms who are advertising in national newspapers are unregulated, then it is highly likely that many more of the smaller companies are operating completely under the radar."
She added that Shelter is concerned that consumers will assume that businesses engaging in such marketing are all above board, when in reality this is not the case.
The charity will continue to campaign until all sale and rent back businesses are signed up to regulation, Ms Boycott claimed.