Due to concerns regarding some of the unethical companies offering a sale and rent back agreeent, the sector is now being regulated by the FSA. One of the concerns of the FSA was the fact that some homeowners were under the impression that they could remain in the property by paying rent for as long as they wanted.

However generally there is no guarantee of lifetime rent back when choosing to sell your house this way. In some cases, those having sold their homes have been evicted from them after just one year. This happened to one couple living in Birmingham, however for them victory has ensued.

The county court ruled that they were allowed to stay in their home for life by either taking out another mortgage and buying it back or renting back from the mortgage company who repossessed, after the company they had sold their home to failed to pay the mortgage. Companies who buy house cash through a sale and rent back agreement and give false promises that tenants are allowed to remain in their homes for life will face even stricter regulations next year. For now however if you are considering selling your home with a company offering to allow you to rent back your home ensure that you have chosen a regulated company.