Rogue sale and rent back (Sarb) firms are continuing to operate despite new regulations being introduced at the start of the month.
Only eight Sarb firms had gained full regulatory permission by last week but a mystery shopper exercise revealed many are still operating illegally. Research by Sarb firm National Property Buyers revealed firms operating after interim regulation began on 1 July 2009 continue to offer mortgage cases to lenders. These are misrepresented as unoccupied properties, instead of Sarb transactions with tenants in place. If a lender is unaware the property has a tenant, the tenant has no security of tenure if a landlord falls behind with the rent. One Sarb firm reported a client contacted it...
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