Key Retirement Solutions' business development director, Dean Mirfin, said that it was "far too early to celebrate," insisting that until the National Association of Sale and Rent Back (NASARB) reveals the proposed set of guidelines, nothing can be assumed.
"The comments from NASARB do not comfort consumers yet - as the sector continues to grow, so too does concern over the sales and marketing practices involved and the suitability of these schemes for many British home-owners," Mirfin said.
KRS is worried that consumers don't think Sale and Rent Back through carefully enough, with most co-erced into opting for the product on the basis that it offers a 'speedy sale' - falsely believing it to be as safe as regulated equity release products.
Mirfin added: “The consultation over a planned code is certainly a positive step forward for the industry, but for the time being it still remains an unregulated sector.
"We are pleased by this first step by NASARB, but do not think that this will be enough until the Government and the Financial Services Authority (FSA) investigate this market fully as a matter of urgency and consider regulation before it becomes a future financial scandal."
