An increase in the promotion of sell and rent back schemes has led to an escalation in the concerns surrounding this practice. The concept is simple; a homeowner sells their house to a landlord at a reduced price and then pays rent to remain in the property.

There have been accusations that these schemes pray on vulnerable members of society who need to raise income quickly. It has been alleged that some landlords are offering short-term contracts of six months and at the end evicting the tenants or increasing the rent payments.

A regulated home reversion plan offers a safe and secure alternative to homeowners to free the equity in their property and, unlike sell and rent back schemes, equity release allows clients to remain in their home or move if they wish to do so.

Consumers are being urged to obtain independent financial advice and proceed with caution before agreeing to any financial commitment. Retirement Plus insists that customers receive independent financial advice in equity release. 

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