Landlords advised about changes to SRB rules
Property professionals
24th July 2009
Sale and rent back (SRB) landlords and businesses are advised that they must apply for permission this month to continue to operate.
Under a new Financial Services Authority (FSA) regime, operators in the SRB market will be subject to regulation and required to meet minimum standards, including proving that they are "fit and proper" persons.
Designed to ensure that customers are treated fairly, the National Landlords Association (NLA) has welcomed the move towards a "more regulated environment" for SRB, something that may interest insurance for buildings customers.
NLA vice-chairman John Socha said: "Although SRB will not stop repossessions, ethical SRB could be a way for homeowners to remain in their properties but become tenants."
Under the changes, customers will have to be told how long they may remain in a property before they decide to sell and be given access to an independent valuation, while applicants to the FSA scheme are required to produce a sustainable business plan.
In evidence recently given to the Treasury select committee of MPs, the NLA claimed that UK landlords are finding it harder to secure mortgage finance in the wake of the credit crunch.
For more information on how Giles can help you with your business insurance, Click here.
