The National Landlords Association (NLA) is inviting interested parties to comment on its draft code of practice for providers in the sale and lease back market.
The schemes have been extremely controversial, with many critics accusing those who purchase properties from distressed homeowners of taking advantage of the financially vulnerable.
Proposals on the draft code of practice include making marketing material clear and not including any misleading information.
The code also limits rent increases to Retail Price Index (RPI) measure of inflation, and says customers must be made aware of all statutory terms of the tenancy agreement.
However, the code does not require members to secure tenancy for one year; a major criticism of sale and lease back schemes in the past.
The code does require members to implement a complaints procedure, and tenants may appeal to the NLA if their complaint is not adequately dealt with.
David Salusbury, chairman of the NLA, comments: “The draft Code should be seen as a work-in-progress. We are putting it out for consultation so interested parties can submit their opinions about how the Code could be improved but also to indicate the seriousness with which the UK's leading landlord association takes its responsibilities for raising standards across the private-rented sector.
“As we have said before, people's homes are not like other commodities. We must act in order to ensure those consumers facing financial difficulty and imminent repossession are protected from rogue landlords.”
The NLA would like any stakeholders to submit their view on the code, which can be viewed here, by 31 August.
If you would like to comment on this story, contact:
Tel: 020 7484 9805
e-mail: [email protected]
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