Andrea Rozario, Director General, SHIP (Safe Home Income Plans), comments on the OFT’s report into the sale and rent back sector (issued 15th October 2008):

“We are not surprised by the OFT’s findings, and SHIP backs their call for regulation.We believe that the ethical companies in the field will probably also welcome this recommendation.

“Ultimately people need to be able to understand the risks involved in a sale and rent back transaction, something that is not always the case currently.To support this, SHIP this month issued a “Do’s and Don’ts Checklist” for anyone considering sale and rent back, as there is no comparison with regulated equity release, and we believe there is considerable confusion.” *

“One point not picked upon by the OFT that we consider vital to address is the issue of whether housing benefit would be available to anyone undertaking sale and rent back: we believe that many customers are given a false sense of security that Government housing benefit will be available should they be unable to meet rent payments, but this is not guaranteed to be the case”.