Peter Beaumont, chief executive of Residential Property Solutions, wants intermediaries to capitalise on sale and rent back.
So the FTSE has broken through the 5,000 mark, house prices are rising and repossessions are falling. Yes, the doom mongers have turned into spin-doctors and we’re now being told that we can expect an economic upturn anytime soon.
Who are these so-called economic experts? Do they live on the same planet as the rest of us and are they not capable of seeing through a few flimsy statistics that are about as transparent as tracing paper?
The FTSE may be experiencing a bit of a rally but many sophisticated investors remain bears as that old saying goes, one swallow doesn’t make a summer. The same goes for house prices and as for repossessions, the FSA has confirmed that the only reason numbers are falling is because of the impact of the government’s pre-action protocol. Unfortunately, by agreeing not to take any action today, lenders may simply be storing-up trouble for the future. Their problems have not gone away.
On the contrary, the problem is actually getting worse. 2.47 million people are now out of work – that’s the highest it’s been for 14 years. It’s a fact of life that rising unemployment feeds through into rising arrears and possessions because if people aren’t earning money, they can’t repay their mortgages. Fact.
What’s more, the various government initiatives designed to help struggling homeowners are having little impact. If the government and lenders are serious about helping homeowners, they have got to consider alternative approaches and one option is staring them in the face: sale and rent back.
Yes, it’s had a bad reputation in the past, but the world has moved on. The market is now regulated and there are ethical schemes available which give homeowners a real chance of sorting out their financial difficulties whilst keeping a roof over their heads. But is sale and rent back included as a possible solution on the DirectGov website? No. And are lenders making customers aware that sale and rent back may be an option worth considering, when they fall into arrears? You’ve guessed, No (with the exception of a small bunch of enlightened souls).
If those who have the power to make change fail to grasp solutions which are available now, what hope for struggling homeowners? Their only hope, I believe is that financial advisers see the light and grasp an opportunity which politicians and lenders have failed to grasp.
Having worked with intermediaries for many years, I believe I have reason for continuing optimism.