Pete Thomson, managing director of Residential Property Solutions Ltd, said: “Today’s news is a bitter blow for approximately 50,000 families who are predicted to face repossession this year.
“The truth is that the scheme has been a dismal failure and has fallen well short of its targets. This type of government support has made little difference and, unfortunately, lender forbearance has simply delayed rather than cured the problem of repossession for many households.”
Today’s news comes hot on the heels of the Consumer Credit Counselling Service’s recent warning that repossessions may start to increase once again as lenders start to enforce suspended possession orders.
Thomson continued: “Sale and rent back is now fully regulated by the FSA and provides a practical and immediate solution for families facing imminent eviction.
“The new FSA regulations give tenants the protection of a 5 year assured shorthold tenancy agreement, which provides a reasonable breathing space for most people to get their finances back under control.
“Sale and rent back means families don’t have to move home and endure the consequential disruption which can be inflicted on employment, schooling and even health.
“Sale and rent back is a solution which already exists and which should now be part of every broker’s toolkit.”
