Which? exposes sale-and-rent-back firms
A new investigation by Which? Money claims to have uncovered “woefully inadequate” advice in the sale-and-rent-back (SRB) market.
Operators in the sector offer to buy homes at a discount, usually from people in financial difficulties, and rent them back to their previous owners.
However, in its research, the consumer group found that only two of the nine firms approached offered acceptable advice, with seven advisers failing to discuss whether SRB was the right option for the customer.
One adviser gave a quote that would not have left the customer enough money to pay off their debts and another didn’t even ask the extent of the debt.
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