With the economy still being very slow and people still suffering from debt problems there is the worry that more homeowners who are struggling to meet their mortgage repayments will consider looking in to sale and rent back agreements.

Sale and rent back agreements are one way that homeowners are able to remain in the property and sell. Typically when entering into a sale and rent back agreement the homeowner is offered far less than the full asking price. In exchange for this they get a guaranteed sale of their property and do not have the worry of repossession. On top of this they get to remain in the property as the tenant. However the downside to this is that the rental agreement is not for life. Typically the rental period is five years. After this tenants could be asked to leave the property.

With money being tight and companies in the sale and rent back sector realising this, it could lead to problems that were seen in the past. Today all companies in the sector have to be regulated by the FSA, but there are worries that new firms could crop up to cash in on those who are suffering from money problems.