Home > What is 'Sale and Rent Back'?

What is 'Sale and Rent Back'?

'Sale and Rent Back' (SRB) represents a fairly recent, but growing, addition to the private rented sector.

It is also known as:

• leaseback
• mortgage rescue
• repossession prevention

amongst other, often less charitable, names.

'Sale and Rent Back' is essentially a sub-market of the private rented sector. In practice the generic 'Sale and Rent Back' business model consists of two facets:

1. In the first instance, a fairly standard property transaction takes place whereby an individual or company purchases a residential property from an owner-occupier, in the main this does not differ from any other vendor arranging the sale of their home.
2. However  the proposition differs from a standard transaction immediately after the sale as the owner occupier remains in the property as tenant and by virtue of the tenancy the purchaser becomes a landlord.

What's new?
• Code of practice has teeth to punish "cowboy" operators
• Consultation document on draft Code of Practice
• NLA publishes draft code of practice