The Office of fair Trading has said that companies who are offering homeowners the chance to sell their homes and rent them back should be more transparent. There are over 1,000 firms offering to buy house to help those faced with mortgage arrears the chance to avoid home repossession. There are also a number of amateur landlords cashing in on buying homes and renting back which give cause for concern.

While there are some less than ethical sell and rent back companies there are also many more who are regulated by the FSA and who seemingly offer the best deal for the circumstances of the individual. However if I wanted to get cash for my house then I would read any agreements from back to front very carefully before signing over my property.

A sale and rent back agreement works by selling your home for slightly less than what it is worth, usually around 70% and then pay rent to remain in the property. However there is no lifetime guarantee of being able to remain in the property. When looking into selling this way you may want to check that any company you are considering is regulated.