House prices have gone up a little in July by 0.2% which has taken the annual shift in prices to minus 0.4%. This is thanks to the sluggish demand for property which has been combined with a very gradual rise in the amount of properties coming on the market. The amount of transactions being made has remained at very low levels in recent months which is bad news for anyone wanting to sell their property and which may see an increase in sale and rent back agreements.

The economic climate is still very much in tatters and some have said that factors such as turning away from owner occupancy is playing a part in homes not selling. If you want to get a guaranteed sale of your home you can choose a sale and rent back agreement. This means you sell your property for what is generally around 70% of the full value of the property and then pay monthly rent to remain in it. The downside to this agreement is that the rental period is typically only fixed at five years. After this period of time there is no guarantee of the renter being able to continue living in the property.

Other economy experts have a brighter outlook and believe that the market will strengthen and the demand for house buying will improve. However only time will tell and if you have property to sell and need to sell fast, time is not on your side. If considering entering into a sale and rent back agreement ensure that you sell to a company that is regulated by the FSA. All companies should follow the guidelines of the FSA.