Duncan Young discusses the OFT report into sale and rent back
Duncan Young CEO of equity release product provider, Retirement Plus, comments on last week’s Office of Fair Trading report into sale and rent back.
Equity release is very different to sale and rent back
Mr Young said: “I welcome the OFT report recommendation for statutory regulation in the sale and rent back sector. Equity release is very different to sale and rent back as it is already regulated by the FSA but it is important that providers of both options adhere to the same set of rules. The concern still remains that more people will be vulnerable to sale and rent back as we see the effects of a recession and unemployment rises. They need to understand that equity release continues to provide advantages over sale and rent back – through a speedy turnaround (home reversion can now take as little as 16 days), low entry costs and critically the ‘safety net of regulation’.
Equity release continues to provide advantages
Although the report is a step in the right direction there is still some way to go before clear regulation and consumers need to continue to obtain independent financial advice before committing to something as life-changing as selling their home.”
06 November 2008