Sale and rent back will not solve the issue of rising repossessions

David Salusbury, Chairman, National Landlords Association, commenting on the OFT announcement of the launch of a market study into sale and rent back, said: "The Government announced in this year's Budget that the OFT was set to take a detailed look at the characteristics of sale and rent back. We are pleased to see that this critical market study is now underway.

"Sale and rent back is relatively new but is set to grow considerably over the next 12 months. With a tighter economic climate, there is bound to be more interest from home-owners who are struggling to keep up with their mortgage repayments and are looking to stave off repossession. Sale and rent back will not be right in all situations and it should not be seen as some kind of panacea to serious financial difficulty.

"But it is precisely to protect these so-called 'distressed vendors' that we have drafted and are about to publish a comprehensive code of practice which will set out what best practice should be in this sector."